0 Replies Latest reply on Dec 11, 2009 5:09 AM by Ryan Sammel

    Contract Compliance via Spend Analysis

    Ryan Sammel Apprentice

      A commonly overlooked aspect of spend management is compliance, especially for customers who are unable to link contract data with Invoice/PO information.  This can still be done using commodity classifications, commodity managers are able to review suppliers that were used to compare these with known contracts.

       

      For example, your company may have a contract for office supplies with Acme Office Supplies.  When reviewing spend in the Office Supplies category, the commodity manager sees that there are 14 suppliers.  While there may be specific reasons for this, basic research can be done to determine why these purchases were done outside of contract.  We consider this a "quick-hit" savings opportunity and should be one of the first reviews after deployment of the analysis tool.

       

      Do you have examples of similar "quick-hit" opportunities that are commonly overlooked?