It is vital to have a robust spend analysis solution to run your organization’s procurement successfully. The question that arises is are you able to stretch the benefits to its maximum from your current spend? You must check your accounts payable, purchase order information etc. and do an analysis. While you could spare some time, and do some of the things on your own. Others will require more in-depth study. Consider using professional spend analysis services while you focus on other aspects of your business.

1 Savings is the key:

The challenge today for every organization is they are expected to perform more with less i.e. ensure better savings with existing goods and services. Spend analysis services will study your procurement, review the overspend, renegotiate with suppliers and vendors and identify the opportunities which you never realized were possible.

2.Manage supplier relationship:

The vendors usually are better informed about how much you are spending and for what services you are spending. With the right spend analysis services, you can overcome this disparity. The procurement consultants you hire will scrutinize and tilt the terms to your favor by renegotiating the contract terms and make sure you get the latest technologies at the best prices. You can get better information about the spends with any specific vendor that you were dealing with previously.

3.Manage maverick spend:

It is often seen that organizations sign a contract with the vendors/ suppliers and forget about it. They do not oversee if the terms are being implemented. The contract is reopened only if some issue props up or at the time of renewal. They continue with them without looking for better deals or new vendors. This results in losing the opportunity of getting better quality products and prices.

Spend analysis services keeps a track of each point in the contract signed and will identify the maverick spends by the organization. The categories where supplies are procured from outside sources without any contract, spend with suppliers when there is a contract with someone else.

4.Improve process:

Spend analysis services provides you with data that will help you make decisions on how the process within your organization can be improved.  It could be in any form – better use of P-cards, purchase orders, consolidating invoices, and many similar functionalities. They will identify specific areas where you can get a better deal with a supplier. This will put your procurements on the right track and help you identify and Implement new systems to generate an improved ROI on a project.

5. Over dependence on a vendor:

Your organization may have been dealing with one vendor for several years now in the traditional way of agreements and contracts. This can be risky in today’s challenging environment. The vendor may continue to supply material and stocks can pile up at your end. What if you do not need the services now or what would happen if the vendor suddenly shuts his shop? Supplementing your spend data with the correct information will enable you to improve your organization’s overall supply chain risk factor.