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Session # 2006   Brian Corry, Senior Managing Consultant, IBM Saul Goldberg, Managing Consultant, IBM   April 15, 2008  3:20 p.m. – 4:20 pm. Building a Spend Analysis Program
Session Agenda ,[object Object],[object Object],[object Object],[object Object]
Building a Spend Analysis Program   ,[object Object]
What is Spend Analysis? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why Perform Spend Analysis? Required Due Diligence for Improvement Initiatives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Spend Analyses Facilitate The Accomplishment of Supply Chain Initiatives Strategic Sourcing Commodity Councils Inventory Management CRM Initiatives Make-vs-Buy Decisions Prime Vendor Initiatives PBL Initiatives SRM Initiatives
Key Activities & Tasks Collect Data Normalize Data Validate  with BU Analyze Data Define Data  Elements Identify Opportunities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Typical Findings Revealed by the Initial Spend Analysis Strategic decision making is currently flawed, possibly fatal Opportunity loss is high ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Long Term Spend Analysis Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Improved strategic decision making Identify competitive opportunity improvements
Spend Analysis Program ,[object Object]
Building a Spend Analysis Program ,[object Object]
Gaining Buy-In ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Identify Stakeholders Perform Outreach Articulate Value Propositions
Overcoming Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],Source: Majority provided by Emptoris
A Framework for Moving Forward ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Desired Capabilities for a Spend Analysis Solution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Majority provided by Forrester Research
Technology Approaches ,[object Object],[object Object],[object Object],Manual ,[object Object],[object Object],[object Object],[object Object],Managed Service ,[object Object],[object Object],[object Object],Software ,[object Object],[object Object],Phased ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Majority provided by Forrester Research
Spend Analysts Bring Specialized Skills Separate From the Buying Function ,[object Object],[object Object],[object Object],[object Object],Source: Majority provided by Purchasing.com
Spend Analyst Job Profile ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Spend Analyst Skill Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Spend Analysis Program Maturity Connect spend analysis with business processes Source: Majority provided by Aberdeen Group ,[object Object],[object Object],[object Object],[object Object],Buy In ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Next Steps ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Data ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SA  Processes ,[object Object],[object Object],[object Object],[object Object],[object Object],Procurement Tools ,[object Object],[object Object],Best in Class ,[object Object],[object Object],Industry Average ,[object Object],[object Object],[object Object],Laggards Analysis Tools Measures
Spend Data Classification Maturity Continuous drive towards deeper detailed data visibility Source: Majority provided by Aberdeen Group ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Traits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Challenges ,[object Object],[object Object],Best in Class ,[object Object],[object Object],Industry Average ,[object Object],Laggards Benefits Measures
Building a Spend Analysis Program ,[object Object]
Organizational Barriers ,[object Object],[object Object],[object Object]
Data Issues ,[object Object],Identifying the real issues and opportunities - Sometimes identifying opportunities is beyond the data ,[object Object],[object Object],Reluctance to share information ,[object Object],[object Object],Resource constraints ,[object Object],[object Object],Cleaning the data – intense efforts due to inconsistent coding ,[object Object],[object Object],Data format - hardcopy data is more difficult to analyze! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Solutions Challenge
Developing Repeatable Processes ,[object Object],[object Object],[object Object]
Spend Analysis Considerations in the Public Sector ,[object Object],[object Object],[object Object],[object Object],[object Object]
Building a Spend Analysis Program ,[object Object]
Lessons Learned Implementing a Spend Analysis Program ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Building a Spend Analysis Program ,[object Object]
Spend Analysis as a Transformation Platform Spend  Analysis Educational Opportunities Continuous Procurement Improvement Address Data  & Technology Gaps Strategic Sourcing Initiatives Business Organization Realignment SCM Improvements
Wrap Up ,[object Object],[object Object]

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Spending Anlaysis

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  • 2. Session # 2006 Brian Corry, Senior Managing Consultant, IBM Saul Goldberg, Managing Consultant, IBM April 15, 2008 3:20 p.m. – 4:20 pm. Building a Spend Analysis Program
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  • 30. Spend Analysis as a Transformation Platform Spend Analysis Educational Opportunities Continuous Procurement Improvement Address Data & Technology Gaps Strategic Sourcing Initiatives Business Organization Realignment SCM Improvements
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