Once you take the time to compile a full spend analytics report, there are many things you can do with the data you collected. Here are a few tips for bettering your operations.
1. Take Advantage of Savings Opportunities. As an organization, you are likely asked to do more with less on a continual basis. Due to this, it is highly beneficial to use the spend analytics data you collected to identify savings opportunities that you were not aware of before.
2. Update Old Processes. After compiling new spend analytics data, you should forgo letting your operations and existing processes remain stagnant. Instead, you should use this data to make informed decisions about how the various processes your organization currently uses could be improved.
3. Understand Risk. After you have worked with a particular supplier for an extended period of time, you may find that your organization’s spend becomes greater than what was contracted or intended originally. Additionally, you might find that your organization has become increasingly dependent on this supplier, which is risky for a number of reasons. Instead of ignoring this risk, spend data should be analyzed to determine exactly where this risk exists and what can be done to remedy it.
4. Reevaluate Existing Supplier Contracts. In order to save time, your organization may simply renew existing supplier contracts without very much thought. However, this should be avoided at all costs. Using spend analytics data, you should use this information in your favor to come to a more favorable agreement.