Rosslyn Analytics can tell you a lot more than just the names of your suppliers.
Spend analytics has moved beyond knowing who you’re spending money with, on what and at what price. These days, it’s no longer acceptable to have a fragmented view of your organization and how it relates to the outside world. You need insight on tap.
Rosslyn Analytics’ cloud-based analytics platform, with its popular free self-service spend analytics app, allows you create savings without ever spending a dime!
Here are five things you may not have known spend analytics could tell you about your organization:
- Contract compliance. You have contracted with suppliers to provide goods and services. However, do you know when the supplier goes off-contract and deliver something that doesn’t meet your specifications? Spend analytics, integrated with contract data, will inform you when items have been placed on invoices that go against your supplier agreements.
- Cash flow. Lack of spend visibility negatively impacts company profits because you can’t manage cash that you don’t see. Spend analytics can help you improve cash flow by better understanding the cost of paying suppliers early. Further analysis such as high purchase order volumes under $100 could reveal an inefficient accounts payable process that requires your immediate attention.
- Tail-end spend exposure. The quickest savings opportunities can be had by getting a grip on the biggest spend with your biggest suppliers. Yet, the largest savings is often found in the tail – the 20% of total purchasing spent with your smaller suppliers. The challenge for many organizations is first obtaining visibility of the fragmented tail-end spend followed by effectively managing it to conclusion.
- Overpayments. Unplanned overpayments are inevitable but if it happens more frequently it’s a sign of something more severe such as potential fraud. It’s therefore vital that you identify erroneous transactions so you can recover these overpayments as quickly as possible. Spend analytics will also help you to prevent duplicate payments, preventing your organization from leaking cash that could be used elsewhere.
- Supplier diversity. Establishing supply chain diversity isn’t just good business sense, it’s often a government requirement. The challenge for most organizations is not knowing the types of suppliers; and this lack of visibility can often limit business growth. Spend analytics will tell you how many of your suppliers are minority and women-owned businesses and through this knowledge you’ll be able to establish a more robust sourcing strategy that will create significant value for your organization.
Experience self-service spend analytics by loading some of your data into the RAPid platform and soon enough you’ll learn something new about your organization today – and you may just find a few savings too.