Drive Cost Savings using Insights

One of the advantages of having insight into your spend is the possibility to drive cost savings by buying only what you really need, when you need it, under the best conditions and buy it from one of your strategic suppliers. It provides the ability to spend less, spend more efficiently and boost category development. 

Using insights and analytics also creates the opportunity to spend 10-20% less, by ensuring that your organization knows price differences per supplier, per region, and is able to act upon it, thus saving money.

Next to that, it creates the  possibility for reduction of spend, because you will buy less, since you only buy what you need. Every invoice has its own overhead. So, combining purchases will lower the number of invoices and will lower the overhead and handling costs. Therefore, by buying less often, through lowering the number of purchase orders through combining purchases, it will reduce the total spend of your organization. For example, instead of buying one item every day, you can buy 5 items once a week. Furthermore, by consolidating spend to less suppliers you save money because you can negotiate better prices and conditions, but also because there are less suppliers to manage.

Category Development

Another benefit of spend analysis is that it provides means to boost category development. Having global insight in your spend and performing spend analytics, provide insights in the spend per category. It can be used to categorize spend and using smart algorithms, which helps categorize unclassified spend.

Global spend visibility increases the alignment of supply and demand and drives these and other advantages. It unlocks value in your supply chain and streamline workflows and processes.

Can you answer these questions for your organization?

• Have we used the right supplier to buy the right thing at the right price?
• Have we bought enough or too much?
• Did we buy our materials, products and services from our strategic suppliers?
• Do the suppliers adhere to the contract terms, i.e. delivery times, contract prices and discounts?

More information?

Do you want to learn more about this topic or how we can help your organization manage their spend data? Reach out to one of our consultants:

Rein Benno de Jager  Business Development Consultant | Industry Lead rein.benno.de.jager@eraneos.com +31 (0)20 773 19 72