Discover how data analysis combined with new technology can support long term cost challenges. What is the vision for data in the future and how will advances in technology benefit social landlords?

1. Using data and tech to
drive benefits in the
sector
John Welsh
Director of IT, Inprova Group

2. Typical procurement challenges
• Increase value for money
• Deliver cost savings
• Reduce non-compliant spend
• Minimise procurement risk
• Improve spend visibility
• Lack of resource
• Embedded approach to contract management

3. Spend analysis
The process of collecting, cleansing,
classifying and analysing expenditure data
with the purpose of reducing procurement
costs, improving efficiency and monitoring
compliance.

4. Why is spend analysis important?
• Internal reporting
• Informing procurement strategy
• Monitor “actual” savings and
efficiency improvements
• Investigate contracted v non-
contracted spend %
• Support VFM Self-Assessment
returns
• Spend profile visibility – who,
what, when, how much
• Maximise negotiating leverage
• Identify opportunities for
aggregation
• Drive supplier rationalisation
• Generate process efficiencies –
consolidate invoice processing

5. The research
On average members
spend less than £250 per
annum with 21.23% of
their supplier base
On average members
spend less than £500 per
annum with 31.26% of
their supplier base
31.51% of
invoices
processed have a
total value of less
than £50
Members spend
over £1M per
annum with
0.93% of their
supplier base
Of respondents to a recent
PfH survey considered
themselves as having good
spend visibility

6. Challenges to analysing spend
• Diverse organisational structures
• Poor quality finance data
• IT system limitations
• No automated classification process
• Lack of resource
• Absence of analytical tools
• Purchasing behaviour

7. How can technology help?
• Data collection – real-time, automated, integrated, repeatable
• Automatic classification
• Full value view e.g product analysis and comparison
• Maverick spend identification on the fly
• Predictive spend trends
• Intelligent purchasing
• Complimentary, not intrusive
• Move to insight and foresight, not just hindsight
• Feeding back into processes, controls and education

8. Questions
John@inprovagroup.com