A lot has been written about spend analysis – analytics, cognitive procurement, big data and how to manage structured and unstructured data within your organisation.
What we see in practice is a lot of companies working on three tiers of capability:
- Some companies still manage their spend analytics through the ERP-based data-warehouse, where static reports are generated and run at a point in time, or companies that run an annual quarterly or monthly spend review.
- Standard reports from Business Intelligence (BI) tools are mostly generated by consultants and you will get what you need at that time, rather than what you require on an ongoing basis. You’ll regularly need something different within two weeks of the report being constructed.
- The most successful organisations are managing through real-time dashboards and understand the ramifications of spend buying channels and implications of the Purchase to Pay (P2P) processes.