Spend Analytics

The first step towards achieving cost savings is spend visibility and developing the savings plan. Spend Analytics is crucial to both of these

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Leverage Spend Analytics as the Foundation for Savings

Spend analysis goes well beyond simply organizing transactional data; as the initial phase of any strategic sourcing initiative, it includes a comprehensive sourcing opportunity assessment—a process that Velocity has executed in over 1,000 engagements, generating more than $1.2 billion in realized cost savings for clients.

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Comprehensive Data Analysis

01

Collect

Determine source files for raw data

02

Assess

Review current data usage and assumptions

03

Cleanse

Delete incorrect and/or duplicate data and standardize names and GL accounts

04

Categorize

Using leading tools, categorize data according to taxonomy

05

Collaborate

Work with suppliers and stakeholders to obtain all agreements and analyze the commitments

06

Shape

Conduct internal and external analysis, benchmark against the industry and competitors

07

Develop

Segment sourcing savings and opportunity wave plans

08

Prioritize

Develop formal recommendations and business cases

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Tried & True Methodology for Estimating Opportunities for Sourcing Savings

Leveraging the spend analysis, it’s important to evaluate existing spend management activities. This includes current contracts, in-flight initiatives, key supplier relationships etc. in order to develop a comprehensive list of opportunities. The purpose of the savings opportunity assessment is to gather all information necessary to decide how spend categories should be managed and what approach to take: Strategic or Accelerated sourcing, Quick-Win Bidding or Tactical Procurement.

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Savings Opportunities Are Best Defined by the Following Factors

External Trends

Total Annual Spend

Maverick Spend

# of Suppliers Top 80%

Level of Quality

Product Differentiation

Buyer VS Supplier Power

Last Sourced Timing

Cost Competitiveness

Insight

Infographic

Case Study

Leveraging the Results

The final deliverable of the spend analysis and opportunity assessment is a detailed spend management opportunity report. Each spend category will have its own recommendation on how to improve spend management and how to achieve cost savings.

Workers Gathered Around Tablet At Meeting

100% transactional visibility on the spend
Clear path forward on how to achieve savings and by when
Plan of attack, including project schedule and required resources
Executive summary for internal buy-in and justification

Spend Analytics

Leverage Spend Analytics as the Foundation for Savings

Comprehensive Data Analysis

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Let Us Help You Get Your Spend Data Analyzed

Tried & True Methodology for Estimating Opportunities for Sourcing Savings

Savings Opportunities Are Best Defined by the Following Factors

External Trends

Total Annual Spend

Maverick Spend

# of Suppliers Top 80%

Level of Quality

Product Differentiation

Buyer VS Supplier Power

Last Sourced Timing

Cost Competitiveness

The Hidden Cost of Leadership Indecision During Transformation

Why P2P Implementations Fail After Go-Live: The Role of Execution Readiness

Why P2P Implementations Fail After Go-Live: The Role of Execution Readiness

Leveraging the Results

Spend Analysis

Sourcing Execution

Reverse Auctions

Gain Share

Let‘s Talk About What’s Next in Your Procurement Journey

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