Software Utilization For Improved Spend Analytic Performance
SPEND ANALYST
As Companies quickly discover, there can be inefficiencies and issues hidden within the spend analytics process that, unbeknownst to them, are costing time and money and detracting from overall operational performance. Source-to-pay software can effectively address these discrepancies by providing better insights into the spend analytics process and, consequently, improved performance in operations.
Prior to implementation, companies should first take an introspective look and consider their current processes and issues. Source-to-pay software can offer distinct advantages in the areas of budgeting, forecasting, and total cost management. Companies should be prepared to think beyond the traditional siloed approach to systems and consider how an integrated approach to the spend analytics process can yield improved incorporation of lesser-monitored external data sources.
To that end, spend analytics requires companies to have clear understanding of their own spend dynamics, including more detailed analysis of past expenditure performances and avenues for improvement. For example, review of case studies from industry-specific competitors and embracing of forward-thinking technology could serve to fine-tune the companies own spend analytics process.
By leveraging predictive analytics tools, companies can now make informed decisions that might have eluded them in the past due to lack of access to the necessary information. This can be critical in ensuring that improved procure-to-pay processes are realized. Also, automated spend analysis processes drive greater efficiencies when compared to manual methods.
In addition to improved resource management, automated spend analysis allows companies to gain better insight into actual costs versus budgeted costs as well as utilize supplier data to enable improved pricing negotiations. Such actionable intelligence enables increased operational performance.
Furthermore, companies should be mindful that with such expansive data analyses opportunities can arise for identifying process improvement opportunities. With automated spend analysis, it is easier to review spending information and compare with the distributed categories to single out any necessary revisions or improvements.
Adoption of source-to-pay software allows organizations to target their efforts to underlying issues, which drives better performance and yields greater return on investment. This enables more engaging platform for procurement as well as decrease administrative tasks. Source-to-pay applications also support improved comparisons between spend analytics reports and insights, providing better visibility and access to spend data across multiple teams, diminishing discrepancies and fraud, thereby driving more reliable financial decisions.
At the end of the day, leveraging source-to-pay applications improves corporate performance, resources and capital allocation, auditing, and risk. By obtaining firmer grip on the core analytics process companies can concurrently improve store procurement fundamentals while adding larger returns to the bottom line.
