What does the third quarter of 2021 hold for your business? While the most optimistic of business owners may predict continued steady growth, a burgeoning market filled with opportunity, streamlined purchasing process generating significant cost savings and a talented workforce ready for the challenge, the reality is no one really knows.
Every business faces a multitude of potential outcomes that can change at any time. From changes in consumer behavior to new competitors looking for a share, there is no clear road for any business. With that said, there are things business leaders can do to improve their fortunes. Shrewd planning, proactive behavior, and the use of analytics can bring certainty in an uncertain world.
Changing Procurement to Generate Cost Savings
This has become especially true with procurement. ProcurePort’s Spend Analysis Process and Spend Analysis Software helps senior procurement officials to uncover hidden savings through spend visibility. Procurement officials can not only gain a clear view of their organization’s procurement spending, but also can run different scenarios and setups to map out future spending and potential savings.
ProcurePort’s Spend Analysis Process collects data from throughout an organization and normalizes it to a set standard. That includes accurately categorizing the several types of procurement data including direct, indirect, and MRO. The data is also categorized with UNSPSC numbers and other taxonomies, including customer proprietary ones.
This data is put into a single spend management cube – Spend Cube – for a complete spend analysis that captures detailed data from required legacy systems, transaction systems, and other data formats such as P-Card, Credit Card and Paper invoices.
ProcurePort has processed more than $3 trillion in spending across suppliers from all over the world. Our software and services team can help create comprehensive and accurate analysis necessary to drive cost savings. Our automated cloud-based system, though, is what truly separates us from the competition.
Users can analyze their data based on spend type, supplier type, supplier density, location, spend amount range, category, sub-category, and other scenarios. More importantly, procurement officials can use this tool to look into the future. By spending more in a certain area, procurement officials can see how that can affect other decisions down the road.
For example, a business may see significant cost savings by purchasing an item in a larger quantity. While that buy may not fit into the budget now, making an additional purchase now at a lower cost could free up additional resources later on. Our automated system gives procurement leaders the ability to experiment with different scenarios to find the best option.
The job of any senior procurement official comes down to a simple premise: How to purchase the goods and services their organization needs at the fairest prices and increase procurement cost savings. The C-suite wants to ensure that the company gets a sound return on its investment while employees want to make sure they have the tools they need to properly do their job.
The world of procurement has only grown more complex in recent years. The time of trying to manage procurement with a spreadsheet or a standard accounting program are long gone. Procurement officials that are not using automated procurement systems risk falling behind competitors or costing the company excess money.
This is true no matter what industry you work in. From food and beverage to medical and healthcare, organizations must procure a massive amount of goods. ProcurePort’s Spend Analysis Process and Spend Analysis Software puts these purchases in perspective. These systems allow procurement officials to benefit in a few key ways:
- Leaders can take advantage of ProcurePort’s experienced solutions consultants that can do the data management and maintenance for you. They collect all of the spend- and supplier-related data, cleanse it and classify it as per the required classification taxonomy. Users have access to the analyzed data at all times via the ProcurePort cloud hosted Spend Analysis Software and full visibility into the entire process, ensuring accuracy and timeliness.
- Procurement officials can rely on ProcurePort to do the heavy lifting of setting up proprietary models for their own needs and then license the cloud-hosted Spend Analysis Software for ongoing management and maintenance.
- Leaders can license the modules for their own use and maintain complete control over their collection. By simply working with ProcurePort once, organizations can set up systems that can be tailored to a company’s specific procurement needs.
Today’s procurement environment is incredibly complicated. The best organizations, though, are able to not only understand where each of their procurement dollars are spent, but also prepare and plan to ensure that they always pay the best price. With automated spend analysis software, senior procurement officials will have the tools to make this happen.