Spend Management

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 An Effort of “Organizing” Transactional Data

The spend analysis and sourcing opportunity assessment is the initial phase of any strategic sourcing initiative. Velocity has performed over 545 sourcing engagements which has produced an excess of $800M in realized cost savings for clients.

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Spend analytics solutions and procurement consulting services help identify and capture cost savings via benchmarking, strategic sourcing, and negotiation

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.

Savings Opportunities are Best Defined by the Following Factors

Total Annual Spend

# of Suppliers Top 80%

Product Differentiation

Last Sourced Timing

External Trends

Maverick Spend

Level of Quality

Buyer VS Supplier Power

Cost Competitiveness

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Insight

What Is Digital Transformation, and How Can It Help Your Procuremen…

What Is Digital Transformation, and How Can It Help Your Procurement Department?

For your procurement department to remain competitive in a fast-moving digital world, you need to be equipped with the right tools to stay ahead of…

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Infographic

Benefits of Partnering with a Procurement Consultant

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Case study

Sourcing Transformation Resulting in Significant Savings

Collaborative sourcing team works closely with Banks lines of business to exceed sourcing savings targets.

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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.

100% Financial 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

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