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Spend Analytics is the discipline of collecting, processing, and analyzing procurement data. Spend analysis uncovers business buying patterns through an in-depth review of procurement data. Organizations use these to manage their suppliers, track procurement performance, and decrease costs. Often the terms are interchanged, though the analysis is one (important) step of many in the analytics process.
Spend Analytics brings together purchasing-related data and turns it into immediate, budget-saving opportunities. The analysis also generates KPIs to assist decision-making. It provides visibility into an organization’s purchasing trends and offers useful insights. Spend analysts can improve supply management by reducing risk and ensuring compliance of any supplier. And measure and benchmark the flow of the end-to-end procurement process against peers.
It answers core questions to improve the financial efficiency of a company.
Purchasing patterns are easier to see on dashboards, charts, and tables. Often these are static presentations or spreadsheets with errors. Rather than use legacy office applications, analysis tools provide a variety of dynamic visualizations that allow data exploration through filters and drill-downs.
One way to show the data is by the procurement category. Category-specific data allows category managers to use their expertise for cost reduction, supplier consolidation, and contract coverage.
Spend analytics helps optimize the procurement performance of any organization by integrating information from sourcing data, cleaning it for accuracy, and categorizing it to item level. The business, operational managers, and procurement professionals can make better, actionable decisions for their organization using spend analytics software with reliable data and deep classifications. Cost savings are a common goal for this process. Most organizations are increasing the time spent analyzing the process, using the analysis software to understand their spending patterns better, to identify future savings opportunities, and to increase Procure-to-Pay efficiency.
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Comprehensive spend analysis is the stepping stone to a successful strategic sourcing program because only real-time and detailed visibility into enterprise purchase data can provide the necessary insight. Without it, you might as well try to conduct sourcing with one hand tied behind your back.
Look no further than our — powerful, expertly engineered procurement software. As a full spend analysis platform, we cleanse, validates, classifies and reports spend data from all your source systems to provide accurate, actionable information, with granular, item-level visibility across the enterprise.
Spend analysis technology in GEP SMART will help you understand what you really spend on, who’s doing the spending and where, and most importantly, if you’re getting your money’s worth. The benefits effectively pay for themselves: reduced maverick buying, lower procurement costs, improved efficiency, better compliance and higher realized savings.
We are a huge advance from the basic, single-module spend analysis platforms that don’t do much more than provide reports from ERP or AP systems. It’s a complete cloud-native, a unified source-to-pay suite that provides comprehensive spend visibility, in-depth analytical reporting, far-reaching business intelligence and opportunity identification.
VGR lives up to its name with automated spend analysis functionality that accomplishes the critical things that make procurement teams successful:
We helping optimizing the procurement performance of any organization by integrating information from sourcing data, cleaning it for accuracy, and categorizing it to item level. The business, operational managers, and procurement professionals can make better, actionable decisions for their organization using our spend analytics software with reliable data and deep classifications. Cost savings are a common goal for this process. Most organizations are increasing the time spent analyzing the process, using this analysis software they can understand their spending patterns better, identify future savings opportunities, and increase Procure-to-Pay efficiency.