driving lasting savings with spend compliance

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New report by BravoSolution

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Page 2: Driving lasting savings with spend compliance

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.

Page 3: Driving lasting savings with spend compliance

Driving Lasting Impact: Today, Tomorrow and for Years

“Spend visibility is the foundation of a best-in-class procurement department.” – Andrew Bartolini, Ardent Partners

Page 4: Driving lasting savings with spend compliance

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.

Page 5: Driving lasting savings with spend compliance

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.

Page 6: Driving lasting savings with spend compliance

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.

Page 7: Driving lasting savings with spend compliance

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.

Page 9: Driving lasting savings with spend compliance

Contact Us

1st Floor, 85 London WallLondon EC2M 7AD+44 (0)20 7796 4170

For more information on BravoSolution,the spend analysis and strategic sourcing company,

visit www.bravosolution.com