Spend Analytics is generally described as the process of collecting, cleansing, classifying and leveraging the spend data for important business priorities like cost, risk and compliance.
Spend Analytics, for many organizations, is both the beginning and the end of the ‘strategic sourcing process’ that drives total value.
Generic Spend Analytics helps to find answers to the following:
- Who is buying?
- What are you buying?
- From whom are you buying?
- When do we buy it?
- Where are you buying from and to which location are the goods being delivered?
- and for How Much do we pay?
However, we at Fluxym, believe that Spend Analytics is and should be much more than just bringing visibility to the spend data.
Every corporation tracks some information about their spend and has a basic understanding of its cost base. But many organizations fail to derive the business value from their spend data since they underestimate the value of ‘internal’ and ‘external’ data sources that can be used to enrich the spend data.
Below is our attempt to highlight (in simple math) how one can unlock business value on certain business drivers by extending the generic spend data with enrichment sources.