The first step when optimising costs is to have a clear picture of where the money is going. Various factors – such as the scale of an organisation, multiple sites and systems, and pressure on the procurement team – make that challenging.
Through implementing spend analytics, Ayming provides the guidance needed to optimise costs and develop the right strategies.
Moreover, we’ve partnered with market leading providers to deploy spend analytics platforms that ensure that your teams and stakeholders have rapid access to your data.
Creating value through spend analytics
Our analysis will map all spending per category and macro-category as well as detailed supplier profiling.
As part of the process, our consultants consolidate all data sources, implement a tailored taxonomy and use this data to develop insights on how to create value through:
- Quick wins
- Savings opportunities in key categories and supplier agreements
- Recommendations for improving performance
- Technical value levers
- Greater control over tail spend
The scope of spend analytics
Our basic spend analysis includes visibility on:
- Spend breakdowns by categories to multiple sub-category levels
- Trends in spend over the period
- Top suppliers and the evolution of the supply base
- Spend variation across geographies and business units
- Supplier rationalisation opportunities
Advanced spend analysis provides an overview on:
- The contractual landscape detailing expiry dates and key contractual conditions and clauses
- Price and product variation and the potential savings opportunities
- Purchase order prevalence
- P2P operations and transaction efficiency
- Spend by payment terms
- Supplier commonality across geographies and business units
Managing tail spend with spend analytics
Most organisations have a long tail of suppliers with low spend. Individual purchases may be low-value or infrequent, but collectively, the leakage of resources can be significant.
Managing this tail spend should be part of any strategy for optimising costs.