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DON'T RISK IGNORING SPEND ANALYTICS, SAYS EFFICIO

Sophisticated technology and increasing specialist expertise mean every company should consider the benefits of properly analysing their third-party spend on goods and services, say procurement consultants Efficio.

In the latest Efficio Viewpoint article Vice President James Jenkinson says it is surprising how many otherwise well-managed companies do not have full visibility of their spend - enabling them to see what is being spent, on what and with which suppliers.

Without that kind of visibility, he argues, there is little chance of being able to analyse a company's spend effectively and put appropriate management strategies in place, including in critical areas such as risk management and contract compliance.

In the Viewpoint, Spend analytics: why you can't risk ignoring it, Jenkinson says: "The time has come for every company to ask what degree of spend analytics should be adopted. The benefits of an excellent spend analytics capability are huge - while failure to adopt such an approach means competitors who make the investment will soon be ahead of the game."

He says spend analytics is now an essential component in an efficient modern company. "It provides the engine for making smarter procurement decisions, producing lower costs, creating savings in administration, improving supplier visibility and achieving higher levels of compliance."

Jenkinson concludes: "The need for good spend analysis is clear. Without it, potential savings are left unrealised, non-compliant or "maverick" spend is likely to be rife and forecasting difficult, if not impossible.

"But with the availability of sophisticated and relatively lower-cost technology and the expertise needed to implement it and train personnel in its use, the arguments for adopting an expert approach to spend analytics are hard to resist."

Ends

Notes to editors

Spend analytics: why you can't risk ignoring it can be downloaded from: http://www.efficioconsulting.com/_uploads/documents/view-poi...

About Efficio

Efficio is a results-focused procurement consultancy with a track record of helping leading organisations achieve more value from their procurement. It is headquartered in London, UK, and has offices in Denmark, France, Germany, Switzerland and the US.

Efficio combines the credentials of a top tier firm with the depth of expertise of a flexible niche player. Clients include 3i, AstraZeneca, Barclays, BAT, Biffa, British Gas, Ford, Scandic, HSBC, KKR, Nokia, National Grid, O2, Tryg and Thames Water among others.

For more information please contact:
Mark Whitehead, Headline Media, on:
0208 348 3103 or markwhitehead@headlinemedia.co.uk
For further information on Efficio please see: www.efficioconsulting.com