To effectively launch a cost reduction initiative, procurement groups have to first start by understanding the company's spend history and patterns. This means undergoing the data collection, cleansing, and categorization process of a Spend Analysis. Beyond navigating desperate systems as a result of decentralized spend management, Procurement must then sort through the data which is often classified using industry standard taxonomies (such as the North American Industry Classification System, Standard Industrial Classification, etc) that aren't conducive to Procurement to to get a view of how and where their organization spends it's money. Next, based on this "information", Procurement can develop a go-to-market strategy for targeted spend categories.
If conducting a manual Spend Analysis isn't feasible, many organizations choose to go a different route seeking Spend Analysis Software. And, like any software implementation, Procurement groups must then undergo the lengthy process of requirements building, attending demos, systems integrations, and more - which can often take months, if not longer.
Luckily, there's an alternative solution. One that removes the burden of having to conduct a manual spend analysis while eliminating the complexities of implementing a spend analysis software. Its called www.SpendConsultant.com. Developed by Procurement Consulting firm, Source One Management Services, Spend Consultant is a rapidly deployable spend analysis web platform. Equipped with high-powered data visualization tools, Spend Consultant allows procurement groups to drill into their spend data and target areas for strategic sourcing.
Discussing the development of www.SpendConsultant.com, Source One Analyst Brian Seipel and Senior Data Scientist James Patounas sat down with Kelly Barner of Buyers Meeting Point in a new podcast titled Actionable Spend Analysis Through Applied Data Science. The two, who played integral roles in the design and development of the Spend Analysis as a software tool, share insight into Spend Consultant's for procurement by procurement value proposition, as well as how data science guided its development.