Derive best in class and tailor made spend visibility, dashboards and reports
PiLog Spend Analytics is the process of collecting spend data from all purchasing sources and systems, cleansing the data, categorizing the data and analyzing it for the purpose of understanding spending trends and identifying saving opportunities. The data included in the spend analytics might include purchasing data, payment data, credit card data and P-card spend data. The information is not only useful for sourcing professionals but also for management and budget owners.
Before we get into how to conduct spend analytics, let’s look at some of the benefits of spend analytics and its common use cases.
Whether it is the CFO of the company or whether it is a department budget owner, they are seeking better visibility into the company or their department spend. The goal is, of course, understand how much they are spending but also to understand where they are spending money.
Spend Analytics done right can help answer common questions asked by senior management.
The next most common use case is identifying opportunities for savings/cost reduction. Procurement professionals are charged with cost reduction and they need data to better understand spend at line item level to come up with savings pipeline.
Ability to forecast spend is an important benefit of spend analytics. There are multiple teams in the organization who can use the spend data to forecast future spending.
For example, finance and planning can use the spend data to understand recurring vendor spend along with long-term contracts to forecast next few years expenditure budgets.
Having data at one single place helps to better understand spend with diversity vendors but also help uncover opportunities to engage more with diverse vendors in certain categories.
Moreover, this diversity reporting is required by the sales team to respond to RFPs, so having this data handy leads to faster turnaround of RFP responses by your sales teams.
The focus of PiLog is on identifying saving opportunities and provide visibility. Hence, PiLog Spend Analytics always becoming a core solution to our stakeholders.