Economic forces are driving the need for deeper cost-cutting measures Procurement officers must shore up suppliers and vendors so as not to cause disruptions to service levels or product delivery –at margins that support company growth! To deliver anything less would be Procurement Malpractice Now, more than ever, investing in Spend Analysis is key

1. The Case for Spend Analysis
or
How To Avoid Procurement Malpractice
10/27/2010
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2. Procurement in 2010
» Economic forces are driving the need for deeper cost‐
cutting measures
» Procurement officers must shore up suppliers and
vendors so as not to cause disruptions to service
levels or product delivery –at margins that support
company growth!
» To deliver anything less would be Procurement
Malpractice
» Now, more than ever, investing in Spend Analysis is
key
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3. Strategies for Procurement Success
The spend analysis formula:
Visibility + Analysis +Process = Success
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4. Strategies for Procurement Success: Visibility
» Spend analysis will give you the visibility you need
» Do you know?
» What am I really spending?
» With whom am I spending it?
» Am I getting what’s been promised to me?
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5. Strategies for Procurement Success: Analysis
» The next step in spend analysis is to analyze the
information
» Some helpful filters:
» What is my aggregated spend with a single supplier?
» How can I benchmark across pricing trends?
» What are my best practices for managing category sourcing
enterprise‐wide?
» What else do I need to know to drive the best terms?
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6. Strategies for Procurement Success: Process
» Vendor complexity and business volatility means
increased pressure in choosing suppliers
» Enterprise‐wide spend analysis processes can drive
value to the supplier relationship
» Processes should span identifying needs, contract
execution and managing service‐level agreements
(SLAs)
» It’s all about creating a balance between
cost and value
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7. Avoid Procurement Malpractice
» Spend analysis is the foundation upon which Best‐in‐
Class procurement is built
» Rigorous spend analysis drives value across your
organization, your suppliers and your customers
» Don’t commit procurement malpractice, begin your
spend analysis today
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8. Contact Us
» 33 N LaSalle St
Chicago, IL 60602
Phone: +1 312‐201‐9600
Fax: +1 312‐201‐9700
» For more information on BravoSolution’s spend
analysis tool, visit BravoSolution.com.
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9. Requirements for SlideShare
» Title: The Case for Spend Analysis
» Brief description: How and why companies must
achieve enterprise‐wide spend excellence using
spend analysis.
» Category: Business & Management
» Tags: spend analysis, procurement, spend
management, strategic sourcing, process, esourcing,
strategy
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