If you are like us, you ask that question frequently. We have just returned from a wonderful trip for summer vacation. We had a glorious time and found it very relaxing. Now that we are home, we are asking that same question even louder! We did not really spend THAT much did we? How could we?
The same holds true in our professional lives. We spend a great deal of time forecasting and budgeting and then trying to understand where all the money is going.
Many organizations use spend analytics to categorize their expenditures and then monitor for compliance. It certainly helps in that regard. The blog pick this week is from Rosslyn Analytics, “Five Things You Didn’t Know Your Spend Analytics Could Tell You”. The five things you might not be using your spend analysis solution for are:
- Contract compliance – are associates buying from the proper source? Do you need to re-communicate the preferred suppliers and contracted pricing available to them?
- Cash Flow – are you taking advantage of payment terms when it makes the most sense? Does it improve your cash flow?
- Tail end expenditure exposure – a few months ago we posted an article, “The last 20 percent”, highlighting the benefits of giving some attention to the tail spend.
- Overpayments – It happens. The key is catching it and resolving the issue.
- Supplier Diversity – Spend analytics can help you identify what types of suppliers you are working with.
Have you found spend analytics to be helpful in the ways listed above? Was one area more impactful for your team? Was your 'wallet' looking healthier at the end of the process?
Share your thoughts by commenting below or tweeting us @BuyersMeetPoint