Compliance Technologies

Spend analytics is the process of collecting and analysing historical procurement data to identify patterns and look for opportunities to reduce costs. It prioritises cost control as well as spending visibility and compliance with relevant legislation. With the data gathered from spend analysis software, businesses can better manage supplier relationships, negotiate better deals, execute strategic sourcing, and improve their supply chain management process, performance management, and lifecycle management. All of this leads to reduced costs and more beneficial vendor deals.

The main stages in procurement analytics include the following. ● Data collection: The business gathers data from various sources — such as spend data, invoices, supplier contracts, and procurement systems for effective category management. Data enrichment can also add a lot of value by integrating supplier performance data to enhance decision-making. ● Data cleansing: The data is standardised, cleaned, and enriched. This eliminates errors and makes analytics more reliable. ● Data classification: Data is categorised into groups, such as by supplier, category, or region — using a framework like UNSPSC. ● Spend analysis: With the data cleaned and classified, you can now explore this information to identify cost-saving opportunities, identity maverick spend, and optimise tail spend. ● Strategic insights: You can also generate actionable insights to improve procurement processes, negotiate better contracts, and make strategic direct materials sourcing decisions, ultimately improving procurement performance. All of these stages culminate in data-driven procurement decisions and greater operational efficiency.

At its core, spend analysis gives you visibility into spend data, helping you understand and benchmark key metrics for procurement performance. By integrating contract and category management this gives you valuable insights into opportunities for reducing supply chain spend. You can also break down costs by individual suppliers, products, and regions with a category spend analysis. This granular approach enables informed decision-making to drive better cost control and efficiency across your entire supply chain network.

Here’s a broad list of the BPO services Profectus can help with: ● AP reconciliation: We can reconcile invoices against purchase orders/goods received, help with invoice processing, and more. ● ERP support: We also offer ERP support with popular systems, including Oracle and SAP. ● Procurement system query support: We can help your internal teams and suppliers manage and optimise procurement systems. ● Analytic tasks: Need us to take care of an analytics task? We can handle everything, from spend analytics to market trend analysis. ● Procure-to-pay support: We can help with post-implementation for your P2P platform, optimising it for maximum efficiency. That said, we can assist in managing various processes, even those not listed here — simply contact us and explain the solution you need.

Advanced spend analytics offer comprehensive insights into your procurement systems. They allow you to collect, clean, and enrich historical data and then use this information to identify trends and inefficiencies. Your procurement team can then use this information to rectify these concerns. Spend analytics supports performance management and enables you to make data-backed decisions, such as whether to consolidate suppliers or renegotiate. All of this leads to more efficient cost control.

Absolutely. We’ll take care of the analytics process from start to finish, handling detailed item-level data collecting, cleansing, classifying, and process efficiency for maintenance. This will offer you total visibility of where your budget is going. Once we’ve completed that task, we’ll help you explore this dataset to identify challenges, propose solutions, and find new opportunities for efficiency.

We can help your procurement team with all aspects of procurement system management and contract management. From onboarding suppliers to supporting procurement system automation, we can cover every avenue to help your team maintain operational excellence and achieve compliance.

Our spend analysis process offers benefits across every business unit, from gaining visibility over your supply chain and identifying spending leakage to making informed decisions backed by quality data sources. ● Full spend visibility: Spend analytics provides full visibility into spending patterns, supporting superior financial planning, better cost control, and more advanced analysis capabilities. ● Cost-saving opportunities: Spend analysis software supports your cost reduction goals. Uncover inefficiencies, identify every cost-saving opportunity, and significantly reduce tail spend by incorporating contract management to make sure spend aligns with your negotiated terms to identify cost savings opportunities. ● Improve supplier performance: With spend analytics, you can benchmark suppliers based on cost and set out clear expectations to encourage improved supplier performance. ● Risk management: Spend analysis lets you identify risk factors and maintain compliance with procurement legislation and policies. Track non-contracted spend and evaluate your risk of supply chain failure. ● Data-driven spend insights: Our spend analysis tool offers actionable spend insights that help identify trends and optimise supply chain planning. Streamline expense management by improving accounts payable workflows.

Yes, we can offer comprehensive ERP support and supplier onboarding help. We can help you with every task, whether that’s updating ERP records, migrating your ERP, removing duplicate vendor accounts, or any other ERP-related tasks. As for suppliers, we can help with activation and deactivation, maintaining accurate supplier information, setting up your catalogue, and more.

We’re able to build a tailored solution from the ground up for your business. From spend analytics and procurement transformation strategies to AP reconciliation, ERP support, and everything in between, we’ll design a custom approach that meets the needs of your business and helps you reach your procurement transformation goals.