Spend analytics

Context and Scope:

Our client’s objective was to categorize its enterprise spend in various categories over the prior year and ultimately streamline the enterprise spend through improved procurement visibility. Specifically, the client sought to identify spend for different categories and prioritize strategic sourcing efforts, considering spend size and supplier fragmentation, for both direct and indirect category areas.

TSC Approach:

The Smart Cube leveraged the client’s accounts payable and purchase order data to form the foundation of our work. The data was cleansed and standardized before being categorized using TSC’s experiential understanding of the supplier markets as well other industry-standardized codes. The spend data was then analyzed in conjunction with additional data on purchase orders and business units, to thereby track employee purchasing and compliance with sourcing policies. The Smart Cube then identified the specific opportunities for the organization to evaluate going forward.

Deliverable:

A detailed Spend Analysis report, complete with spend breakdowns as well as actionable insights was delivered to the client. Specifically, the data was represented using spend tree analysis, and both the top suppliers and major spend categories were identified. The analysis also provided critical insights including key spend categories that provided better sourcing opportunities as well as summary of key next steps as part of the final deliverable.