Data analytics is at the core of smart, sustainable procurement practice. Whether you’re reviewing the big data of an entire general ledger or the simple spend breakdown of a small non-key category, data analysis is imperative.
A spend analysis will typically be an in-depth review of a business spend over the last 12 months. Each supplier will be categorised and sorted according to size and importance. Hawtrey Dene will then highlight and prioritise the opportunities for cost efficiencies with a top level overview and at sub-category/supplier level.
Understanding and analysing the data highlights any bad practice and helps the procurement team to prioritise areas of focus.
- Out of policy/rogue spend: We are often told that ‘all spend is with one supplier’ or that ‘the only people who buy this are X’, however following a data review, it becomes clear that a large amount of spend is often uncategorised, misunderstood or simply not tracked. Controlling rogue spend commonly drives significant savings
- Overspend: Overspend (sometimes referred to as “supplier creep”) is spend with an individual supplier that is outside of the contractual agreements or even outside their core competency
- Bench-marking/overpricing: A key benefit of using Hawtrey Dene is our intimate understanding of supply markets. Our comprehensive benchmark data enables us to validate client pricing versus best-in-class market rates
- Consolidation: Scale is a key component to a procurement exercise. We categorise all suppliers to identify accurate annual spend and the number of existing supplier relationships
- Tail spend: Hawtrey Dene’s spend analysis provides a complete category view of spend and allows us to identify consolidation opportunities
- Departmental spend: A clear and structured breakdown by department and individual can help the procurement team direct training and policy to create spend efficiencies across the business.
As part of our Opportunity Assessment, Hawtrey Dene will conduct a full analysis of your spend data. This will provide a deeper understanding of your business’ spend profile and subsequently identifies the key opportunities for driving efficiencies and savings.
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