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The Case for Spend Analysisor

How To Avoid Procurement Malpractice

10/27/2010

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Procurement in 2010

»Economic forces are driving the need for deeper cost-cutting measures»Procurement officers must shore up suppliers and

vendors so as not to cause disruptions to service levels or product delivery –at margins that support company growth!»To deliver anything less would be

Procurement Malpractice »Now, more than ever, investing in Spend Analysis is

key

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Strategies for Procurement Success

The spend analysis formula:

Visibility + Analysis +Process = Success

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Strategies for Procurement Success: Visibility

»Spend analysis will give you the visibility you need»Do you know?

»What am I really spending?»With whom am I spending it?»Am I getting what’s been promised to me?

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Strategies for Procurement Success: Analysis

»The next step in spend analysis is to analyze the information»Some helpful filters:

»What is my aggregated spend with a single supplier?» How can I benchmark across pricing trends?»What are my best practices for managing category sourcing

enterprise-wide?»What else do I need to know to drive the best terms?

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Strategies for Procurement Success: Process

»Vendor complexity and business volatility means increased pressure in choosing suppliers»Enterprise-wide spend analysis processes can drive

value to the supplier relationship»Processes should span identifying needs, contract

execution and managing service-level agreements (SLAs)»It’s all about creating a balance between cost and value

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Avoid Procurement Malpractice

»Spend analysis is the foundation upon which Best-in-Class procurement is built»Rigorous spend analysis drives value across your

organization, your suppliers and your customers»Don’t commit procurement malpractice, begin your

spend analysis today

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Contact Us

»400 Chesterfield Pkwy Malvern, PA 19355Phone: 610-240-0600Fax: 610-240-9470

»For more information on BravoSolution’s spend analysis tool, visit BravoSolution.com.

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Requirements for SlideShare

»Title: The Case for Spend Analysis »Brief description: How and why companies must

achieve enterprise-wide spend excellence using spend analysis. »Category: Business & Management»Tags: spend analysis, procurement, spend

management, strategic sourcing, process, esourcing, strategy