Getting the Most from Your Spend Analysis Software
Running spend analysis reports is a very necessary part of procurement, particularly if you want to look for opportunities to improve your spend under management and find new categories to source. Even if you think you run a tight ship, there’s always some maverick spending going on or some indirect spend unaccounted for, which can be caught with indirect spend analysis reports. However, not all spend analysis software is created equal.
If you’re still using spreadsheets or reports from your ERP to gauge your spending habits, you’re likely dealing with some inaccuracies (and headaches). There are different types of spend analysis software out there, with different features, and to make the most of it, you need to determine what’s best for your company. First, determine what you want to get out of a spend analysis and opportunity assessment
What Are the Benefits of a Spend Analysis and Opportunity Assessment?
If you’re not familiar with spend analysis technology yet and are wondering about some of the benefits, spend analysis helps:
- Achieve spend visibility
- View spend by sourcing categories (versus accounting categories)
- Identify saving opportunities
- Evaluate suppliers so you can identify preferred suppliers
- Find maverick spend more quickly
- Work collaboratively in-house and with other organizations
- Allow for data-driven strategic sourcing
The process of spend analysis involves asking questions. While you’re plugging in numerics, you’re asking things such as, “What are we buying?” “Who are we buying it from?” “Who from our team is buying?” The reports analyzed correctly with the right spend analysis software should provide you with the answers.
Choosing Spend Analysis Software
When it comes to spend analysis tools, you have a few to pick from.
You can opt for:
Spreadsheets: Typically not desired with all you have to pick from. Spreadsheets are generally unreliable and can’t offer you opportunity assessment-type feedback, such as spend cube analysis.
Procurement suite: May offer merged tools such as a procurement spend analysis dashboard where you can see more than just spend analysis, or stand-alone spend analysis software.
It all depends upon your needs as a company as to what you may want.
What Features to Look for in Spend Analysis Software
To ensure you’re getting the most out of your spend analysis software, you’ll want to look for certain features. If you’re looking for spend analysis software only, you may want to look for software that makes manual processes easier (think of all the places you have to gather data from). You also may be pulling from many different data sources, so you should consider all of them before starting a spend analysis implementation.
Currency conversion is another must—this is a benefit that spend analysis should bring you. Some analysis software can even pull data from Slack conversations, so if you’re struggling pulling items manually, look for software that can do this for you.
If your choice is an entire procurement suite, think about the most beneficial features to you and your organization. With many to choose from, is having eAuction part of the conversation vital to you, or would you like contract management as well?
You can do everything digitally when it comes to procurement, but not every suite does them all well, so pay attention to what is most meaningful to you. If it’s the spend analysis, make sure that it has the robust features that matter most to you.
To hear more about spend analysis software or to request a demo, schedule a demo today by clicking here, EC Sourcing Group, or by calling 973-936-9672. We can help you re-imagine your procurement solutions.