Presented by:

Sanjeev Kumar Das

Sultan Ashraf
 THE REALITY TODAY

In order to identify cost savings

opportunities and efficiencies in
public procurement, practitioners
first need better visibility over how
much is being spent, on what, with
and by whom.
 THE REALITY TODAY

The good news is that your

organization probably paid the right
vendor, the right amount, the right
number of times and the data about
that transaction exists somewhere in
your systems.
 THE REALITY TODAY

The unfortunate reality is that public

sector and higher education spend
data is often poorly organized for
procurement purposes,
inappropriately classified, exists in
many different systems and is
difficult to access.
 SPEND ANALYSIS AND SPEND MANAGEMENT

 What are they?

 Who should use them?
 What are the common pitfalls?
 What can be achieved?
 How are they done?
 Real examples
 ASK YOURSELF

Does your procurement team

have easy access to data about
how much is spent, on what,
and with whom?
 ASK YOURSELF

Does your procurement team

trust that the spend data they
have access to is reliable,
complete, without too many
duplicate suppliers and
classified accurately?
 A TWO PART PROCESS

Spend Analysis is what you

do to the data…

Spend Management is what you

do with the data.
 SPEND ANALYSIS

Accounts Payable
Spend

Clea Spend data that

nse
you trust and that
contains as much
Classify
detail as possible
Enrich
 SPEND MANAGEMENT

Manage
Deliver Improve
Maverick
Savings Processes
Spend

Manage Recover
Supplier Manage Risk Over-
Spend
Spend
Relationship payments

Data
Data Procure Co-
operatively
Reduce
Disparity
Source More
Locally

Benchmark
Ensure Legal Quantify
Relative
Compliance Savings
Position
 WHO SHOULD USE THE DATA?

• Procurement Directors
• Contract Managers
• Buyers
• Business Officers/Vice
Presidents
• Finance Directors
• Accounts Payable
• Audit/Legal Departments
• Economic Development
• Diversity Officers
• Sustainability Officers
 WHO SHOULD USE THE DATA?

Department heads, budget holders and anyone

who spends the organization’s money.
 WHAT CAN BE ACHIEVED?

Deliver savings and efficiencies

by using data to get better pricing,
leverage data in competitive/
negotiation processes & identifying
opportunities for internal and
external collaboration.
 WHAT CAN BE ACHIEVED?

Bring spend under management

by providing a solid foundation for
decision making that includes all
data sources, profiling and
managing suppliers according to
importance & identifying non-
compliant spend.
 WHAT CAN BE ACHIEVED?

Change buying behavior by

providing stakeholders with visibility
of their spend, creating departmental
spend reports to influence behavior &
using data to have more informed
discussions.
POTENTIAL
SOLUTIONS
• AP System Tools
Software
Focused
• eProcurement Tools
• Analytics/BI Tools

Data • Spend analysis service

Focused
• Hire a data analyst

Guidance
Focused • Consultancy Project
 POTENTIAL SOLUTIONS - DIY

Export spend
Sense check Stitch exports
data from all
exports together
systems

Enhance vendor Manually

Manipulate in
information classify
Excel
(top 25) suppliers/spend
 POTENTIAL SOLUTION – 3RD PARTY

Check
Export spend data Standardize Validate exports
fitness/accuracy of
from all systems exported data with organization
data exports

Enrich vendor Classify

Manually validate De-duplicate
information fro vendors/spend to a
classifications supplier records
third party sources common system

Provide BI tools
Link to a master
and an export
record number
function
 5 PIECES OF DATA TO START

1. Supplier Name
2. Supplier Address
3. Transaction Number
4. Transaction Date
5. Transaction Value
 CONCLUSION AND NEXT STEPS

Spend Analysis is really the first step

Get the data in shape first
Start thinking about problem areas
Using tools to analyze the data
Let the data guide you
Decide what spend management
projects are worth undertaking