What is Automated Spend Analysis?
What is Automated Spend Analysis
What is Automated Spend Analysis
Automated Spend Analysis, is the process of systematically, extracting, consolidating, aggregating, transforming and sharing company spend data, that provides regular updates and insights, that inform the appropriate sourcing decisions. Automatic Spend analysis software, is a collection of tasks or sub processes that have been automated to provide spend visibility, automatically organised in a specific work flow that captures spend data, that is analysed, classified and shared with business stakeholders in a Spend Analytics Dashboard.
Automated Spend Analysis is split into the following steps :
Extract Spend Data
Consolidate Spend Data
Aggregate Spend Data
Transform Spend Data
Share Spend Data
Automated Spend Analysis, is a combination of specialised software that analyses spend data using data visualisations, shared in a business intelligence platform, that displays company spend metrics and (KPIs). Automated Spend Analysis Dashboards connect and analyse procurement spend data, with built-in text analysis, identify trends, outliers and valuable insights, which help management make informed business decisions by transforming raw spend data into valuable insights.
Automated Spend Analysis : Extraction
Spend analytics software, is usually connected the various data sources within ERP systems, the challenge most companies have is to connect and unlock access to company wide Spend data. For example, in a recent spend analysis use case or case study, a manufacturing company in the UK acquired three new smaller business to add to its portfolio. The Challenge for the Procurement team was how to extract these new companies into one company wide procurement spend profile.
There are various spend analysis extraction techniques that can be used:
Spend Analysis Excel, creating Spend Analysis Excel Templates
Spend Analysis Using Power BI Software
Alteryx Software
Tableau Software
In essence the creation of Spend Analytics, relies upon a good solid data foundation, when connected to spend analysis software, creates an automated spend analysis data extraction process, approved and vetted by Finance and procurement.
Automated Spend Analysis : Consolidation
Spend Analysis Consolidation, is the consolidation of the procurement spend analysis process. Data is consolidated into a standard template, and using spend analytics software, the consolidation process prepares the raw data through a series of automated workflows, that shape the raw data into a cohesive, normalised view of the spend data. Consolidating, field headings , descriptions, chart of accounts and data quality.
Automated Spend Analysis : Aggregation
Spend Analysis Aggregation, is the process of preparing all the numerical spend data values, Price, Cost, Currency, exchange rates, units of measure, quantity information, this aggregation is preparation for the next step of transformation.
Automated Spend Analysis : Transformation
The use of Automated Spend Analysis software and Spend Analytics, has made it faster and more efficient to perform spend analysis on a regular basis. An automated spend analysis transformation process, that applies various spend classification rules, in essence these rules allow the software the following Spend Classifications :
Line Level,
Supplier Level,
Item Description
Material Group & Item Group
supplier details, that focus on spending patterns, usage, unit cost, payment terms and addressable spend. This transformation process will be discussed in more detail in a later post.
Automated Spend Analysis : Sharing
Using automated spend analysis that connects to a data visualisation layer, that provides procurement spend analysis in the form of a procurement spend dashboard.
This is normally viewed in a secure, hosted environment, which is easy to use, saves time and provides insight.
What are the Benefits of Automated Spend Analysis
Benefits of Automated Spend Analysis
The following list provides the benefits of using automated spend analysis:
Spend Quality
Spend Automation ensures that every action is performed identically - resulting in high quality, reliable and consistent spend analysis results.
Time Saving
Automation reduces the number of tasks you and your employees would otherwise need to do manually. This frees up your time to work on items that add genuine value to the business, allowing you to be more innovative and increasing your employees’ levels of motivation, using spend analytics software.
Spend Visibility
Automated spend analysis processes are controlled by defined workflows which consistently operate accurately and within your defined timeline. Automation provides the structure of requirements for successful measurement of procurement spend analysis and spend visibility.
Efficiency
Process automation reduces the time it takes to achieve a task, the effort required to undertake it and the cost of completing it successfully.
Governance
The consistency of automated processes means you can rely on (a) your business processes to operate and (b) you can offer reliable processes to your customers, maintaining competitive advantage.
Reduced Costs
Spend Analytics Workflow automation allows companies to define and streamline their business processes. Eliminate unnecessary tasks and realign process steps to optimise the flow of information throughout your production, service, billing and collection departments.
What is Automated Spend Analysis Software
Procurement Spend Analysis Software
Automated Spend Analysis Software, is the process that take raw procurement spend data, runs it through a series of automated spend analysis processes, that provide procurement with spend visibility that is organised, classified and shared with procurement stakeholders. At a high level, Spend Analysis, is basically, the process that is aligned with the organisation procurement structure, takes raw data and makes it useful for category managers, buyers and sourcing professionals.
What is Accelerated Insight ?
Accelerated Insight is a spend analytics software, that takes raw spend data, organises quickly it into a Spend Analytics Dashboard. Agile process design which requires minimal input from Procurement, designed to take Data to Dashboard in Minutes*.
A budget friendly spend analytics software and solution, that combines data science, business intelligence with procurement subject matter expertise. Built with purpose, to provide a future proofed, robust, Spend Analytics Software Solution.
procurement cost reduction
procurement cost savings
procurement cost management
procurement cost optimisation
cost management
operating model
target operating model
For more information we have compiled a short list Automated Spend Analysis searchable tags :
spend analytics dashboard spend analysis dashboard procurement spend analysis dashboard category management dashboard procurement savings dashboard cost savings dashboard spend dashboard analytics dashboard software spend analysis dashboards procurement dashboard supply chain dashboard software savings dashboard procurement and spend analytics dashboards vendor spend analysis dashboard spend management dashboard supplier management dashboard supplier performance dashboard