You saw a situation where spend analytics could be used over and above the standard analysis of the transactions http://faoblog.com/processes-ap-spend-analytics-contd/
Spend analytics has a lot of application.
On the purchase side, some areas where it can help are:
- Purchase logistics and execution
- Vendor Credit Analysis
- Contracts/Deals Management
- Order Consolidation
- Cost of purchases optimization
- Freight Planning/Scheduling
- Replenishment Optimization
- Repacking & Shipping
- Trailer/Yard Management
- Physical Inventory Check
- Reverse Logistics
Spend analysis helps with how optimize procurement costs across geographies and also helps assess strengths and opportunities for handling spikes and troughs in a planned manner.
Analysis Leads to Understanding
How healthy is the procurement channel and the dedication of employees for optimizing costs incurred by them? It help in:
- Know your supplier’s potential.
- Learn which products are good and reliable.
- Find out which businesses are becoming prohibitive, adding extra cost to your end product.
- Understand your requirement trends and the cost of urgency.
Analysis Leads to Cost Savings Opportunity
Businesses can use Spend Analysis to:
- Reduce cost.
- Plan your purchases based on your sales demand.
- Help local businesses.
- Attract new vendors.
We have enabled a button on the top of the first page, which will enable you share your posts. If you wish to write about any of the current streams, you can do it at http://faoblog.com/guest-post/. We will review your post and release it within 48 hours of your posting.