Quite simply, spend analysis is the name given to the process of identifying, gathering, grouping, categorizing and analyzing corporate spend data with the goal of decreasing procurement costs across the organization. This is done using data analytics and provides the insights required to save money and gain operational efficiencies.
Spend analysis as a field is a sub-division within the broader arena of spend management. It allows us to visualize our data in a consolidated manner allowing us to make better sourcing decisions. Spend Analysis can also help us improve compliance across the business.
So how would one begin to leverage Spend Analysis?
Essentially there are 3 key elements that we must look at when conducting a Spend Analysis assessment. These are:
Before we are able to analyse our data we must first extract it from its various data sources. This data then must be cleansed, before being combined together with the various other data sources available and presented in an easily readable, manageable format. No easy feat for large enterprise organizations who operate many decentralized software platforms.
Once all data is cleansed and organized into relevant categories, you are ready to start analyzing. The trick here is to identify trends and verify you are leveraging supplier data to get competitive pricing.
Internal & External Processes
The key to successful Spend Analysis is a robust internal and external supplier management process supported by solid internal governance, purchasing frameworks and a shared toolset. With the right software platform and processes embedded within the heart of the organization centralized management is possible, with real-time decision making possible based on data driven assessment.
Here at Robobai our advanced AI powered technology is leading the field in Spend Analysis. Enterprise organizations across Australia are today using Robobai’s AI engine to save $millions of dollars year on year, at the same time revolutionizing the way procurement is handled within their firms. Interested in finding out more? Get the Robobai Demo today!