Whether you're looking to implement better category management plans, identify opportunities to reduce costs via strategic sourcing or entirely optimize procurement operations, conducting a Spend Analysis is the starting block. A comprehensive spend analysis will provide you with a clear view of spend history and patterns, so you can better align your spend to business needs.
Step #1 to conducting a spend analysis: Data Collection. While on the surface seemingly easy - gather price and quantity information, further digging can reveal hidden complexities. What about if you receive quantity price discounts? Does the pricing include or exclude shipping costs? Is there a discount for early payment? These are all factors to consider when holistically gathering and assessing spend data - factors that are discussed in Part 2 of the Spend Analysis Podcast Series, with Spend Consultant Jennifer Ulrich.
In this episode, Jennifer reviews the spend data foundational to conducting a spend analysis: Price and Usage. Procurement professionals beware - there are more elements to consider when collecting and analyzing spend data such as contract terms, quality levels, and scope of work. Jennifer discusses these factors and how they relate to a larger overall go-forward strategy.
To know where you're going, you first need to understand where you're at. Source One's spend consultants can help your organization gain a clear view of your spend through a comprehensive spend analysis. Even better, our spend analysis service includes an opportunity assessment, providing you with a road map to cost saving opportunities by industry experts.