Spend tracking software tracks corporate spend and identifies trends that may impact expenses. The software is capable of extracting information from multiple sources like procurement spending for raw materials, accessories, and services. They provide enterprises with visibility into purchasing -related information and cut down on unnecessary expenses.
Generally used by procurement professionals and accounting departments, the spend analysis software helps one to go beyond conventional expense management software. They can be delivered as a separate product or integrated ain spend management software or supply chain analytics technology, to help enterprises streamline their expense management processes.
A crucial part of spend analysis is gaining visibility as it converts data to information. After all, it's vital to know what exactly you are working on, before proceeding further.
In this arena, one needs to identify trends & use supplier data to get competitive pricing. Avail this powerhouse of spend information to gather your spends whereabouts.
For procurement process improvisation, one needs to begin with the credible data gathered. This data transform the process from technical to strategic sourcing.
I already have an ERP system, why would I want a spend analysis software?
ERP systems aren’t specifically designed for the needs of a procurement team. They are much more inclined towards Finance, HR, and Manufacturing related views. Also, the level of ease and flexibility required is not up to par in an ERP system. And finally, making changes within an ERP system can be difficult for various reasons.
On the other hand, Spend analytic solutions allow Procurement Teams to focus purely on data analysis which in result produce better results.
What is the approximate cost to implement a spend analysis solution?
Costs vary depending on the size of the company, frequency of data requirement, and often on the number of users. A spend analysis solution is quite affordable & provides a significant return-on-investment owing to the benefits an organization obtains.
How resource intensive is it to implement spend analysis from my team's perspective?
Usually, the software is designed to minimize resource requirements for the customer; however, in several areas, one should expect from teams to spare a few hours, such as:
- Data extraction
- Figuring out the format in which data is required
- Development of taxonomy.
- Business objectives
- Data Validation
- Training required
Are any updations possible, post-launch?
Yes. We allow you to update your ERP app to meet the market standards. However, the changes made by us are chargeable.
What is the Return-On-Investment for a spend analysis solution?
ROI for a spend analysis solution is depended on various potential savings areas including, but not limited to these:
- Time savings estimates such as annual or quarterly spend aggregation or sourcing event aggregation
- Higher spends leading to increased professional buying and an impact on sourcing/buying
- Savings related to price comparisons across organizational entities
- Savings associated with developing & driving a sourcing pipeline
- Saving time in report management for procurement and other departments
- Risk mitigation and risk management processes impact.
- The cost to Identify, reduce & eliminate contract and preferred supplier leakage
- Savings related to pricing inaccuracies.