We talked about various areas where you can suggest / work on spend analytics for your client. https://faoblog.com/processes-ap-spend-analytics4/
Continuing on this today as well:
- Preferred Vendor Spend Analysis: Almost all organizations have a list of preferred vendors, which has been built over a period of time due to various reasons, like reliability, quality of product, emergency support and the like. There can be categories where a preferred vendor has not been used, or a vendor has been supplying much more than expected. This analysis normally helps in re-structuring the purchases to ensure best prices and timely delivery. In some cases we even identified vendors getting undue advantage due to kickbacks for some procurement personnel. We have even identified areas where a preferred partner did not exist and our recommendations helped our client.
- Removing Spend inefficiencies: Spend analytics helps in identifying process inefficiencies. Driving purchases towards approved buying channels will improve overall controls, yield better compliance, improve data quality, lead to faster sourcing cycles, and provide term discount
- opportunities. This will also reduce over accounts payable costs. Any processes / unit / individual deviating from the current processes and norms can easily be isolated and reported.
- Contract reviews: This process comprises of the review of key contracts to determine if there are significant deviations from the contract’s terms and conditions. You will need to identify and report an analysis of the reasons for the same.
- Periodical Spend Analytics: Spend Analytics is normally not a onetime exercise. This should be implemented as an ongoing process to maintain a next level control and to help the business to adapt to the market forces as soon as possible.
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