Spend Analysis: Lessons from the Best-in-Class

This is an excerpt of the original article. It was written for the March-April 2012 edition of Supply Chain Management Review. The full article is available to current subscribers.

March-April 2012

New research from the Aberdeen Group under-scores the importance of spend analysis. The findings, however, also show a gap between those companies struggling to implement a spend analysis program and the best in class. Aberdeen’s Constantine Limberakis relates the lessons learned from these leaders that can move you up the competency ladder.

Browse this issue archive.

Already a subscriber? Access full edition now.

Need Help?

Contact customer service

847-559-7581   More options

Not a subscriber? Start your magazine subscription.

New research from the Aberdeen Group underscores the criticality of spend analysis to overall spend management. The findings also show, however, that many companies struggle with putting together an effective spend analysis program. The insight and guidelines offered here can help any company advance up the competency ladder toward
Best-in-Class—regardless of the starting point.

Companies today continue to struggle to obtain a 360-degree view of spend data. Those that can distinguish themselves as Best-in-Class organizations—top-performing
enterprises measured on a series of distinct key performance indicators—not only extract, cleanse, classify, and analyze their spend data from multiple sources, but also leverage spend analysis as a predictive measure to improve spend compliance and reduce supplier risk through market and supplier data. The Aberdeen Group recently concluded an in-depth report examining the crucial set of processes that encompass spend analysis by exploring the pressures, strategic actions, and capabilities of 132 organizations surveyed globally.

Our research found that spend analysis, when performed correctly, provides the capability to increase visibility into spending, promote insightful sourcing decisions, and identify cost savings opportunities. However, the success of any supply management program is largely dependent upon the ability to properly access, organize, and analyze spend data.

This requires a unique combination of process and technology to get spend analysis done right. This article presents highlights of our research, focusing in particular on the key attributes of a successful spend analysis program and the characteristics displayed by Best-in-Class companies. The article then lays out the steps necessary to continually improve the spend analysis process at your organization— regardless of your current maturity level.

This complete article is available to subscribers only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access.

Not ready to subscribe, but need this article?
Buy the complete article now. Only $20.00. Instant PDF Download.
Access the complete issue of Supply Chain Management Review magazine featuring
this article including every word, chart and table exactly as it appeared in the magazine.

SC
MR