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Book Review – Spend Analysis
There is a brand new supply management book that is worth your attention. Spend Analysis: The Window into Strategic Sourcing by K. Pandit and H. Marmanis, has just been published by J. Ross Publishing, and is available at major booksellers, including Amazon.com. Let me tell you why I think this book is an important read.
One of the foundation blocks for transforming an organization’s practices to world-class supply management is the business process called strategic sourcing. And one of the requirements for enabling world-class strategic sourcing results is rigorous spend analysis.
Of course, you can start strategic sourcing without rigorous spend analysis. Many companies, in the years before modern spend analysis tools were developed, had to bootstrap their sourcing efforts with crude, manual spend analyses. In fact, many sourcing programs still get underway based on preliminary, manual spend analyses.
But if the objective is to achieve truly world-class and sustainable results, that will necessitate implementing a rigorous spend analysis methodology sooner rather than later. Spend analysis can help improve several areas: the identification of cost reduction opportunities, the prioritization of sourcing projects, the negotiated results, and the tracking and monitoring to ensure that negotiated results make it to the bottom line. It can also play an important role in improving compliance in this world of Sarbanes-Oxley.
Spend Analysis: The Window into Strategic Sourcing is – quite frankly - the definitive text on this important subject, written by leaders in this field. I encourage you to read it, to discuss it with your colleagues, and to make its ideas a core part of your transformation plan.
Note: in the spirit of full disclosure, I wish to mention that a few months ago the authors of Spend Analysis invited me to write the Foreword to the book. After I read the manuscript, I agreed. Not only because the subject is important, as noted above, but also because the book is well written.
Book Review – Spend Analysis
March 11, 2008
There is a brand new supply management book that is worth your attention. Spend Analysis: The Window into Strategic Sourcing by K. Pandit and H. Marmanis, has just been published by J. Ross Publishing, and is available at major booksellers, including Amazon.com. Let me tell you why I think this book is an important read. One of the foundation blocks for transforming an organization’s practices to world-class supply management is the business process called strategic sourcing. And one of the requirements for enabling world-class strategic sourcing results is rigorous spend analysis.
Of course, you can start strategic sourcing without rigorous spend analysis. Many companies, in the years before modern spend analysis tools were developed, had to bootstrap their sourcing efforts with crude, manual spend analyses. In fact, many sourcing programs still get underway based on preliminary, manual spend analyses.
But if the objective is to achieve truly world-class and sustainable results, that will necessitate implementing a rigorous spend analysis methodology sooner rather than later. Spend analysis can help improve several areas: the identification of cost reduction opportunities, the prioritization of sourcing projects, the negotiated results, and the tracking and monitoring to ensure that negotiated results make it to the bottom line. It can also play an important role in improving compliance in this world of Sarbanes-Oxley.
Spend Analysis: The Window into Strategic Sourcing is – quite frankly - the definitive text on this important subject, written by leaders in this field. I encourage you to read it, to discuss it with your colleagues, and to make its ideas a core part of your transformation plan.
Note: in the spirit of full disclosure, I wish to mention that a few months ago the authors of Spend Analysis invited me to write the Foreword to the book. After I read the manuscript, I agreed. Not only because the subject is important, as noted above, but also because the book is well written.
Posted by Robert A. Rudzki on March 11, 2008 | Comments (0)
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