Getting Started With Spend Analysis For Source-To-Pay Solutions
Spend Analysis Software
Identifying and managing organizational spend plays vital role in developing an effective and sustainable business model. To that end, having an effective spend analysis solution is key. In todays highly automated business environment, spend analysis tools offer crucial advantage in the form of comprehensive overview of how, why, and what is being spent.
With source-to-pay solution that includes integrated spend analysis capabilities, organizations gain comprehensive view into their total spend, which serves as the foundation for cost savings, strategic-spend analysis and optimize spend across the organizations supply chain.
This guide provides an overview of the source-to-pay solution?s spend analysis capabilities, explains how to configure the solution and suggests best practices to maximize return on investment.
Step 1: Explore the Wide Range Analytics Tools
Understanding the capabilities of the spend analysis solution is an essential first step. The solution?s analytics software offers number of different ways to track and analyze spending patterns. From dashboards and drill-downs to categorization and modeling, this solution provides an array of analytical tools.
Drill?down reports, for example, enable users to view spending information from broad level into the category, supplier, and even the sub-category level. This helps identify potential areas for cost savings.
Another valuable tool is the categorization tool. This function automatically categorizes expenses based on specific criteria. For example, the tool can be set to scan for automotive-related expenses and categorize them in the ?Transportation? category.
In addition, the modeling feature offers an effective way to quickly and easily create data models to visualize spending patterns.
Step 2: Configure Spend Analysis Settings
The next step is to configure the spend analysis settings for the solution according to your needs. There are several settings that can be adjusted to ensure the optimal output.
The first setting is the data source. This determines which data source will be used to collect and store data. Common data sources include accounting applications, internal databases, and third-party sources.
The second setting is the date range. This controls the date range against which the analytics are run. This setting allows you to set specific date range or use rolling date range, which focuses on just the last three months, last six months, or last year.
The last setting is the time period. This controls the time period for which the analytics are to be run.
Step 3: Customize the Dashboards
Once the settings are configured, you can customize the dashboards, reports, and tools to view the spend data in the most meaningful way.
The solutions offer range of customizable dashboards and reports that offer an easy way to view and manipulate spend data. You can choose from variety of preset dashboards that provide an overview of company-wide spending or view detailed reports to understand spending patterns at the supplier level.
In addition, users are able to create custom dashboards to meet the needs of the specific organization. The dashboards can be set to drill down into the data to category level and provide further filtering options.
Step 4: Incorporate Spend Analysis into Strategic Decisions
The spend analysis solution not only provides comprehensive visibility into current spending but can also be used to inform strategic decisions.
For example, the collected data can be used to identify potential areas of cost savings, spot overspending, track price variations between suppliers, and analyze potential price and strategy changes.
With this data, organizations can make informed decisions about suppliers and more effectively manage their overall spend.
Conclusion
Spend analysis is an integral part of source-to-pay solution, providing real-time visibility into and analysis of organizational spending. The solution?s suite of analytics tools allows users to quickly and easily track and analyze spending patterns, customize dashboards, and make informed and strategic decisions.
Following the steps outlined in this guide will ensure the effective use of spend analysis solution and the optimal return on the organizations investment.
