Understanding spending behaviour can often be the first step in creating a procurement environment which is strategic in nature, proactive, and targeted to be a key tool in the delivery of wider business plans.
By conducting an initial spend analysis, the resulting insightful data on historical spending patterns, together with future business plans will be a fundamental tool in enhancing the strategic procurement delivery of any organisation. Not only that, but understanding major spend categories, and the commercial approach applied are the first steps in being able to effectively plan and target procurement activity to deliver maximum value for money.
Increasing spend visibility can lay the foundations to deliver:
- Forward targeted procurement planning
- Increased demonstrable value for money
- Enhanced procurement strategy within key categories
- Improved contract and regulatory compliance
- Reduction of supply chain risk
- Aggregation of demand across your organisation
- Optimise your supply base
A bird’s eye view of your areas of spend across the organisation can also present greater commercial value through:
However, this is all well and good, but if the housing sector is to get full value from spend management, then technology will need to be at the heart of how data is collected, managed and acted on.
In its 2018 annual global survey of chief procurement officers, Deloitte highlighted the potential opportunities for organisations to embrace technology to heighten spend visibility through data collection. Procurement data and analytics will impact on forecasting, risk forecasting, cost optimisation, process improvement and reporting.
All too often procurement teams lack the systems, time and resources required to analyse their spend data effectively, and in doing so fail to maximise the efficiency gains available. Challenges around data accuracy, completeness and accessibility all inhibit what is a fundamental element of any highly performing organisation committed to managing spend effectively.
To discover how your organisation can profit from increased spend visibility and management, download our case study that outlines our work with Black Country Housing.
Alternatively, get in touch with our Consultancy team to book a no obligation discussion email@example.com