So why did source one, the leading procurement services provider, set out to create yet another spend analysis tool. How incorporating six sigma into strategic sourcing helps strengthen the supply chain in the early days of manufacturing, managers often relied on guesswork when adjusting their processes. We present flowchart of spend analysis process in form of a dataflow diagram. Spend analysis process prep for strategic sourcing. Leveraging our decades of experience, diverse spend category expertise, strategic sourcing best practices, and procurement tools and resources we collaborate with clients to deliver value. Furthermore, compliance to strategy and process will be encumbered by the increasing cost to change. It provides an executive overview and technical details for practitioners on how a rigorous methodology can identify costsaving opportunities and ensure that results reach the bottom line. How to improve the effectiveness of your spend data and spend analytics.
The window into strategic sourcing and millions of other books are available. Some costeffective alternatives available for spend analysis and strategic sourcing. Spend visibility is the cornerstone of superior procurement performance. Few companies have employed standard procedures or systems to control spending from sourcing through purchasing compliance and quality assurance according to aberdeen group, the category spend. The window into strategic sourcing by kirit pandit. Solutions overview supplier management strategic sourcing direct spend solutions procurement financial supply chain services for buyers. The window into strategic sourcing this is the first reference to provide indepth guidance on spend analysis. Public procurement practice spend analysis standard.
Zycus strategic sourcing suite comprising of zycus strategic solution is the right answer for all procurement issues. Spend analysis delivers big benefits apqcs research shows that organizations with spend analysis programs have more efficient procurement processes that cost less. Access all areas of the cips knowledge online library including tools and templates and supply management stories. If you cant analyze your spend a growing number of senior executives are coming to realize that strategic supply management can be a significant driver of improved corporate performance. Pdf spend analysis the window into strategic sourcing download full ebook. Spendedge offers expertise on spend analysis, category management, startegic sourcing, and procurement analytics. Definition spend analysis is the process of collecting, cleansing, classifying and.
Spend analysis the window into strategic sourcing binding. Spend analysis first step in strategic sourcing free download as powerpoint presentation. Cips northumbria branch 21 october 2010 duncan olive. Making informed decisions during the strategic sourcing process is critical to ensure that your organizations procurement processes dependent on the spend data execute successfully. The window into strategic sourcing paperback collection. This spend analysis book is currently the only reference that provides indepth guidance on the spend analysis. Spend analysis can help you get an accurate view of your organizations spending, your suppliers, and opportunities for improving your sourcing and procurement activities. A spend analysis of one agencys spend is used to identify the types of kbs procured. Spendedges strategic sourcing solutions helps a global. Spend analysis should include the identification, automated collection, cleansing, grouping, categorization, and analysis of all spend data for the goods and services purchased for the organization. Sep 16, 2004 gao assessed 1 if agencies use spend analysis to obtain knowledge to improve procurement of goods and services and 2 how agencies practices compare to leading companies best practices.
A strategic spend analysis solution will allow your organization to identify what data is important to collect, and will then enable actionable business decisions based on that data, including a forwardthinking sourcing roadmap. At each step in the process, our sourcing specialists proactively share their strategic sourcing knowhow and categoryspecific best practices to our clients. Organizations with clearer spend visibility into their sourcing. How to improve the effectiveness of your spend data and spend. By our definition, strategic sourcing is an organized and collaborative approach to leveraging targeted spend across locations with select sup pliers that are best suited to create knowledge and value in the customer supplier interface. With the recent focus on cost reduction, many organizations are devoting more time to spend. Taking a strategic approach to procurement involves a range of activitiesfrom using spend analysis. Spend analysis, the window into strategic sourcing.
Jul 24, 2008 access all areas of the cips knowledge online library including tools and templates and supply management stories. Spend analysis software spend visibility smart by gep. Spend analysis as a service from source ones category. Whether purchasing goods or services, a few items or a few thousand items, procureports eauction tool can generate signi. Enhance your network and get connected to a global community of.
A procurementfocused taxonomy weve devised a method for categorizing spend into buckets that actually make sense to a category manager or strategic sourcing analyst a rapid turnaround. Spend analysis is the most critical component, and the starting point, of strategic supply management and is essential to achieving worldclass performance. Enhance your network and get connected to a global community of 120,000 in 150 countries. Spend analysis the window into strategic sourcing 1st. By tailoring the solution for the customer and your unique requirements, an organization will be able to truly gain visibility into the data they need to develop a strategic, forwardthinking sourcing plan. No matter how small or big a company is, the benefits of spend data analysis make it a must have. Cleanse your data, understand your purchase history, aggregate suppliers, classify spend, and create a strategic sourcing roadmap for greater savings and easiertomanage spend categories with source ones spend analysis. Abstract this paper introduces spend analysis, spend management and supplier management field. Spendedges strategic sourcing solutions helps a global financial services company category overview it storage services include the provisioning and supervision of stored data in bulk amounts, including backup, recovery, and archive. How incorporating six sigma into strategic sourcing helps.
Marmanis and a great selection of similar new, used and collectible books available now at great. The funding supports mildeps and odas in the implementation of strategic sourcing initiatives that provide benefit to the department. Spend analysis the window into strategic sourcing 1st edition. Sap ariba spend analysis software solution will help you get the cleareset insight into all your spend and supppliers. It provides an executive overview and technical details for practitioners. Comprehensive spend analysis is the stepping stone to a successful strategic sourcing program, because only realtime and detailed visibility into enterprise purchase data can provide the necessary insight. We also have many ebooks and user guide is also related with spend analysis the window into. Integrated strategic sourcing solution suite zycus. The dangers of using bad spend data should be quite clearly evident, and they may include. It brings about knowledge into the core components of spend categories. The first step of strategic sourcing is to assess opportunities by conducting a spend analysis, which is a quantitative technique used to better understand patterns in spending by examining costs. This is a very wellwritten book that covers all topics of spend. Strategic sourcing spend analysis total cost of ownership the total cost of ownership calculation is an advanced cost structure analysis where, in addition to product cost elements, other cost elements, such as acquisition transportation, warehouse, financing cost and lifecycle usage period, maintenance, repair, are taken into.
The window into strategic sourcing is the ultimate handbook on spend analysis for firms who are looking at spend analysis software solutions to better understand their procurement spend and pursue opportunities such as leveraging of purchases, supplier consolidation, parts rationalization, reduction of maverick spend. The window into strategic sourcing is the definitive text on this important subject, written by leaders in the field. Spend analysis the window into strategic sourcing by kirit pandit and dr. This title provides guidance on what spend analysis. A growing number of senior executives are coming to realize that strategic supply management can be a significant driver of improved corporate performance. And strategic sourcing advanced spend analysis is critical to understanding the current spend in indirect and direct categories. The window into strategic sourcing is the definitive text on this. The window into strategic sourcing ebook written by kirit pandit, haralambos marmanis. Spend analysis solutions with functional expertise determine your strategic sourcing plan gep. We provide analyses, information, spend analysis software and overall guidance to improve efficiency and strengthen cash flows across your entire organizational supply chain. Interviews from 12 cases are then used to identify best practices and cost drivers in sourcing kbs. Spend analysis by kirit pandit and haralambos marmanis book. He also details how advanced spend analytics can help produce strategic intelligence for sourcing and supply risk management.
Failures and missed opportunities were common, as tweaks to manufacturing and supply lines were frequently based on gut feelings. Because we know that none of the other spend analysis resources were designed specifically for use by procurement and strategic sourcing professionals. Pdf managing procurement spend using advanced compliance. This market basket report allowed the client to quickly generate itemized spend and usage detail for each spend category and it significantly shortened strategic sourcing cycles. The pitfalls of bad spend data spend analysis is fast becoming a necessity for businesses in every industry. We provide analyses, information, spend analysis software and overall guidance to improve efficiency and strengthen cash flows across your entire. As the lead for strategic sourcing, dpap oversees the distribution of limited funding to ssdb members. There are a number of solutions available to help you collect, cleanse and classify your spend data, but most fall short of actually helping you analyze your business and make more. We present main issues in development of a spend analysis software, and give an overview of current spend analysis systems. Unfortunately, 39% of enterprises fail to link the output of their spend analysis efforts to their sourcing processes thereby leaving significant savings on the table. In this paper, we discuss a software solution for spend compliance analytics that includes measurements of cost savings due to increased.
Cips has formulated positions on strategic sourcing as this is a key activity for purchasing. For spend data to drive real value, organizations must take action on it. Purpose the purpose of this document is to provide a workable procedure for the strategic sourcing methodology of procuring goods and services for th e state of louisiana. It is currently the only reference that provides indepth guidance on what spend analysis really is, what it involves specifically and how to use it in your journey to worldclass performance. Spend analysis cips northumbria branch 21st october 2010 duncan olive. A careful spend analysis that ties technology and consulting expertise can boost spend visibility and help convert senseless raw data into strategic sourcing opportunities to achieve savings. This spend analysis book is currently the only reference that provides indepth guidance on the spend analysis process, what it involves specifically and how to use it in your journey to worldclass performance. Joe payne, director of strategic sourcing, source one management services, is an experienced consultant who has helped many companies reduce costs and manage change. Spend analysis with functional expertise determines your. Using the spend analysis tool, enporion developed a customized market basket report.
Strategic sourcing spend analysis spend consultant support. If not, they can consume money and deliver no returns due to lack of adoption. The window into strategic sourcing 9781932159936 by kirit pandit. These are the books for those you who looking for to read the spend analysis the window into strategic sourcing, try to read or download pdf epub. Oct 2010 duncan olive cips spend analysis visibility is king. Compliancereduce maverick spend strategic sourcing programme. The strategic sourcing methodology provides the state with a process to reduce spend on key categories, reduce. It is our point of view that your procurement function should. Stay in touch and up to date through member only events and branch meetings.
Without it, you might as well try to conduct sourcing. He leads a team of project managers and analysts, developing insights into the challenges organizations face when undertaking initiatives to reduce costs in the area of indirect spend. Gao assessed 1 if agencies use spend analysis to obtain knowledge to improve procurement of goods and services and 2 how agencies practices compare to leading companies best practices. Strategic sourcing is a logical process involving the application of tools by skilled, competent and knowledgeable people. Developing the strategic sourcing strategy is a fundamental part of the purchasing and supply management process. In this briefing paper we take a look at how spend analytics, and smart and creative use of the source data, can help organisations answer some of those tricky, complex, or even embarrassing questions relating to procurement expenditure. Link spend analysis efforts to your sourcing processes. Using spend analysis data to build your sourcing roadmap. Online auctions are an integral part of the strategic sourcing process. Learn about the strategic importance of spend analytics as a precursor to procurement and supply chain transformation be presented with a framework of where spend analytics fits in the value creation continuum take a deep dive into the intricacies of performing a comprehensive spend analysis pwc. Spend analysis and benchmarking, strategic sourcing spendedge.
Some costeffective alternatives available for spend analysis and strategic sourcing include. If you cant analyze your spend a growing number of senior executives are coming to realize that strategic. Taking a strategic approach to procurement involves a range of activitiesfrom using spend analysis to taking an enterprisewide approach to buying goods and. Strategic sourcing contract management supply chain product development finance cost accounting corporate buyers suppliers category managers. Marmanis and a great selection of similar new, used and collectible books available now at great prices. Growing numbers of senior executives are coming to realize that strategic supply management can be a driver of improved corporate performance and better risk management.
Managing procurement spend using advanced compliance analytics. Spend analysis 101 comprehensive guide for beginners sievo. The window into strategic sourcing book online at best prices in india on. In fact, the market is starting to get a bit saturated with them. Read spend analysis the window into strategic sourcing by kirit pandit available from rakuten kobo. Andrew bartolini of ardent partners demonstrates how procurement organizations can leverage nextgen spend analysis tools to drive insightdriven decision making. Nov 06, 2017 for spend data to drive real value, organizations must take action on it. Act of organizations comparing key metrics of operations to others in the industry is called benchmarking. Unfortunately, 39% of enterprises fail to link the output of their spend analysis efforts to their sourcing processes thereby.
The following sourcing efforts are the key to developing opportunities into cost savings and process efficiencies. Haralambos marmanis isbn 9781932159936 retail price. The first step in strategic sourcing details the baseline process that an organization should follow to establish a functional strategic sourcing program grounded on accurate expenditure information. Explained in easy to understand format with practical examples. Dec 12, 2014 every organization has different data and business needs, so we believe a spend analysis solution should take that into consideration. Strategic sourcing methodology pdf semantic scholar. The window into strategic sourcing is the definitive text on strategic sourcing, written by leaders in the field.
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