Spend analysis is the process of identifying, gathering, cleansing, grouping, categorizing and analyzing your organizations spend data with a goal of decreasing procurement costs and improving efficiencies.
Using real-time data and analytics will give you the insight you need you to save money and gain efficiency.
After going through Spend Analysis training participants will understand and learn about:
- Understand the main parameters for defining a Spend Analysis scope.
- Learn about the key activities involved with identifying and collecting spend data.
- Understand the key activities involved with cleansing the spend data.
- Understand spend at a granular level so that sourcing team can identify saving opportunities.
- Understand key vendors so that procurement can define and execute a strategy for strategic vendors.
- Provide visibility to senior management on key spend areas.
Who Should Attend :
Top Managements Process Engineer
Business Executives Account Managers
Manufacturing Managers Supervisors
Benefits of Attending
Spend analysis is one of the key tools that procurement organizations use to proactively identify savings opportunities, manage risks and optimize the organization’s buying power.
Spend Analysis training workshop will offer following benefits:
- Full visibility on procurement spend.
- Identify savings opportunities and realize incremental savings.
- Align and streamline procurement processes across business units.
- Manage risk and maverick spending to ensure compliance.
- Evaluate supplier performance for better relationship management.
- Benchmark performance internally or with peers.
- Aggregate, normalize and enrich spend data.
- Bring more spend under management.
- Understand all fixed and variable cost drivers to develop robust sourcing strategies
- Boost cost savings from strategic sourcing initiatives.
Introduction to Spend Analysis
What is Spend Analysis? Characteristics of an Ideal Spend Analysis.
Business Imperative and Return on Investment
Spend Leakage and Compliance Multiplier, Estimation of Spend Analysis Return on Investment.
How to Identify Spend Level Opportunities
Supplier Rationalization, Demand Aggregation, Bypass of the Preferred Purchasing Process, On-PO Spend, Off Contract Spend, Diversity Spend Compliance, Supplier Performance, Spend with Poorly Performing Suppliers, Approved versus Non-approved Spend, Spend by Payment Type.
How to Identify Transaction Level Opportunities
Contractual Term Opportunities, Unrealized Discounts and Rebates, Quantity Violations, Delivery Date Violations, Payment Terms Opportunities, Invoice Processing Opportunities, Consolidated Payments, Frequent Charges and Credits, PO Approval Limits.
Anatomy of Spend Transactions
Types of Spend (Direct , Indirect, MRO), Procurement Processes-P2P-P Cards-T&E, Sources System and Data Extract, Quality of Data.
Spend Analysis Components
Data Definition and Loading(DDL)-Data Cleansing-DDL Consideration-Data Assessment, Data Enrichment(DE), Knowledge Acquisition and Management, Spend Reporting and Analytics.
Spend Analysis and Compliance
Extract, Quality Control Violations in Procurement Process-Supplier Assessment-Supplier Selection-Contract-Procurement or Requisition-Fulfillment-Invoicing-Payment, Implementing Control in Procurement, Spend Leakage.
The Future of Spend Analysis
Spend Forecasting, What-If Spend Analysis, Microanalysis, New Product Target Cost Analysis, Price Benchmarking.
Feedback From Past Participants
“This workshop helped us to learn the key activities involved with cleansing the spend data.”
“This workshop had the knowledge to spend at a granular level so that sourcing team can identify saving opportunities.”
“The trainer guidance has helped us to identify savings opportunities and realize incremental savings.”