Spend Analysis |
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Spend Analysis has been identified by Aberdeen Research as a fundamental component of eSourcing and essential support for procurement teams to achieve fully informed decision-making. |
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| Spend Analysis collates corporate procurement data and analyses values and volumes of transactions. |
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| Key benefits of Spend Analysis include: |
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Highlight range of product categories and procured services |
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Provide overview of supply base |
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Identify supply processes to support change management programmes |
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Develop procurement strategies, policies and systems |
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Illustrate procurement pipeline potential through software |
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Demonstrate importance of data classification - suppliers, products, services, budgets |
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Identify candidates for prioritisation and quick wins (supplies, product categories) |
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Create realistic estimates of process and direct cost saving opportunities |
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| Potential savings typically emerge from: |
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Identifying opportunities to combine spend and negotiate improved contracts |
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Identifying and eliminating non-compliance or unauthorised spend |
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Improving procurement operations and supplier performance |
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| Curtis Fitch will deliver Spend Analysis in two stages |
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Stage One - Benchmark your procurement data against our supply database |
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| This involves reviewing individual data. Each category of spend is reviewed against real savings achieved by our clients. |
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| Our database holds results from 4,000+ sourcing events, in 400+ categories, typically conducted for FTSE 100 and 250 companies. |
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| Our report then summarises and analyses: |
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Annual expenditure by supplier |
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Annual expenditure by category |
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Invoice review by category and by supplier against industry benchmarks |
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Supplier review by category industry benchmarks |
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Category savings potential |
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| We identify opportunities to maximise savings across the full spectrum of your spend. |
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Stage Two - Validate your procurement data and assess categories to be influenced. |
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| Curtis Fitch Consultants meet the relevant stakeholders within your business. Key target spend areas are identified in advance and one -to -one interviews are conducted to validate these areas and current contract status. |
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| The outcome is a comprehensive assessment matrix showing the extent and level of influence for each spend category. |
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| Your original data is re-formatted to show the areas of potential renegotiation and re-calculated to show the potential savings deliverable. |
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| Curtis Fitch helps you to build a clearer spend control and a savings-focused culture. |
