Last week we introduced some next practice thinking around Spend Analysis. This week we will talk about some of the techniques that can help launch a successful Spend Analysis project.
One of the key differentiators between Strategic Sourcing and Tactical Purchasing is the decision to invest up-front in spend analytics and opportunity profiling. This crucial planning step provides a holistic snapshot of where money was spent and the results associated with that expenditure. Done properly Spend Analysis (SA) focuses the organization and prioritizes scarce resources towards opportunities that best meet the future needs of the business.
I read with interest Michael Lamoreaux’s recent blog post called “Are You Revenue/Growth Enabled?” In this post, Michael talks about whether Supply Chain/Sourcing/Procurement organizations are revenue/growth enabled? Perhaps Michael has forgotten the spirited debate that he facilitated two years ago when we declared that Strategic Sourcing is Dead.…