driving lasting savings with spend compliance
TRANSCRIPT
New report by BravoSolution
The Procurement Dilemma:How can CPOs succeed in this volatile environment?
• Missed Opportunity: Spend Analysis• To many organisations are running spend analysis infrequently at best• The result: This only shows an end-of-year snapshot of current
spending and leaves the most powerful benefits untapped.
• What’s holding companies back? Three Misconceptions:• Enterprise-wide spend analysis is too resource-intensive.• Cost-cutting is a procurement-only issue; not an organisation-wide
initiative.• Spend analysis depends on high quality data.
• Procurement is likely sitting on a wealth of hidden savings.
Driving Lasting Impact: Today, Tomorrow and for Years
“Spend visibility is the foundation of a best-in-class procurement department.” – Andrew Bartolini, Ardent Partners
Instant ROI: Today’s Benefits
• More spend under management.• Off-contract spending exposes deeper issues than non-
compliance for procurement. • Leveraging spend analysis, procurement can quickly uncover
rogue spending to stop savings loss.
• Stronger supplier and contract compliance.• What if a supplier is charging too much – or prices vary monthly?• Spend analysis alerts procurement in real time on price variances.
Impacting Tomorrow: Short-Term Gains• Transforming procurement into a company-wide initiative.
• Non-compliance is an opportunity for improvement, not just a hindrance.
• Enhancing purchasing collaboration.• Spend analysis uncovers overlapping purchasing needs and discovers
fragmented categories and opportunities for contract consolidation and volume-based purchasing.
Lasting Value: Spend Analysis as a Driver for Change
• Extending the value of procurement. • Fueling better decisions – Spend data and analysis can be leveraged
outside of procurement by finance, marketing, logistics, etc.
• Holistic spend analysis ensures that saving targets are realistic, actionable and accurate – raising red flags when corrective actions needs to happen.
“Highlighting and reporting contract compliance not only helps to maximise savings, but also enables a positive dialogue with stakeholders around
why contracts are either not used or have never been properly implemented.” – Tom Kinnaird, WPP.
Getting Started – What’s next?
• Management buy-in for spend analysis.• We’ve busted the myth that spend analysis is too complex; ROI is
almost instantaneous.
• A flexible solution set. • Procurement needs a flexible tool that can analyse granular data – by
price, department and product.
• A change in company culture.• Every department, every employee must understand their role in
advancing procurement's goals.
Driving Lasting Savings with Spend Compliance
• The report is available free of charge at BravoSolution.com.
Contact Us
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For more information on BravoSolution,the spend analysis and strategic sourcing company,
visit www.bravosolution.com