Big Data Analysis With A Small Budget For Purchasing Spend Analysis

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Even before “Big Data” Purchasing groups were swimming in data and struggled to put it to effective use.The success of Strategic Sourcing methodology had the effect of identifying and standardizing the types and format of information that can be used to drive improvement. For almost no cost you can conduct deep spend analytics with this simple process

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Big Data Analysis With A Small Budget For Purchasing Spend Analysis

  1. 1. Big Data with a Small Budget for Purchasing Spend Analysis You Do Not have to spend lots of money on complex analytic tools to obtain the most relevant spend analytic information. Bill Kohnen July 2014
  2. 2. Introduction • Big Data and Analytic Solutions continue to be a point of focus • Even before “Big Data” Purchasing groups were swimming in data and struggled to put it to effective use • The success of Strategic Sourcing methodology had the effect of also identifying and standardizing the types and format of information that can be used to drive improvement Bill Kohnen July 2014
  3. 3. Take Action • Using Fairly basic Microsoft office functions you can conduct valueable analysis of lots of data • You can do this without expensive specialized software that requires lots of training, support and on going cost • Using this basic process may ultimately make you decide to pursue a specialized analytic tool set but by then you will understand very well what your needs and expectations are Bill Kohnen July 2014
  4. 4. Get Basic Data From AP or ERP System Have a Senior level person with broad knowledge review and add other data as needed. A Senior person will save time as they will know the data and be able to make educated guess’s about any gaps on their own Sample End Format For Illustration Supplier 2012 Spend 2013 Spend 2014 YTD Grand Total Category Owner Business Payment Schedule Demand Acme Spend $ 3,500,000 $ 1,500,000 $ 5,000,000 Direct Alex Aerospace N30 MRP Demand Beta $ 5,000,000 $ 3,000,000 $ 300,000 $ 8,300,000 IT Ben Corporate N90 Capital Plan Food Services $ 120,000 $ 120,000 $ 70,000 $ 310,000 HR Kate Corporate N30 Monthly Recurring Delta $ 300,000 $ 310,000 $ - $ 610,000 Facilities Kate Corporate N30 Annual Recurring X Tron $ 850,000 $ 1,850,000 $ 1,250,000 $ 3,950,000 Indirect Jane Medical As Needed As Needed Approval Bill Kohnen July 2014
  5. 5. Create Pivot Table Bill Kohnen July 2014
  6. 6. Chose What You Want To Review Choose Fields You Want To Review Bill Kohnen July 2014
  7. 7. Example of Top Suppliers Bill Kohnen July 2014
  8. 8. Build An Analytic Dashboard That Meets Your Needs Bill Kohnen July 2014
  9. 9. Summary • Take advantage of the tools you have and the simple process described to generate value from purchasing spend analysis • There will be immediate payback • You will better prepare yourself for understanding what new tools might add more value later Bill Kohnen July 2014

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