{"id":5669,"date":"2024-01-12T14:25:00","date_gmt":"2024-01-12T14:25:00","guid":{"rendered":"https:\/\/itelgroup.co.uk\/development\/?p=5669"},"modified":"2024-04-02T12:20:09","modified_gmt":"2024-04-02T12:20:09","slug":"how-spend-analytics-can-improve-your-procurement","status":"publish","type":"post","link":"https:\/\/itelgroup.co.uk\/development\/news-updates\/how-spend-analytics-can-improve-your-procurement\/","title":{"rendered":"How Spend Analytics Can Improve Your Procurement"},"content":{"rendered":"\n<p>Most companies know how much they make each year, but how many know what they\u2019re spending? It\u2019s a pretty big question, but it\u2019s one relatively few can answer without intelligent spend analytics. It\u2019s a big question, because close to 20% of what a company spends annually goes on indirect goods \u2013 the things that keep the company running \u2013 and it all adds up.<\/p>\n\n\n\n<p>The average company spends \u00a3900 to \u00a31200 a year per employee on office supplies, which in a company of 30 adds up to a yearly salary \u2013 and that\u2019s just one spend category. When you factor in things like computers, software licenses, printing and cleaning products, it\u2019s not hard to see how spending gets out of control \u2013 and what a huge opportunity there is to make savings.<\/p>\n\n\n\n<p>Fortunately, those opportunities are made far easier to spot by spend analytics platforms. While they\u2019re not particularly new in a technological sense, they are increasingly sophisticated &#8211; and more to the point they\u2019re saving companies a small fortune. I-Tel Group, for example, typically saves clients 15% in the first month and a further 10% in the following months. Sound too good to be true? Well, it\u2019s not \u2013 and it\u2019s all made possible by some pretty smart tech. So how does it work?<\/p>\n\n\n\n<p>Spend analytics software is a little like YouTube in a certain sense. When you watch videos or listen to music on YouTube, it will analyse what you\u2019ve watched, gather the information, correlate it with other user data and make recommendations for similar videos that you might like.<\/p>\n\n\n\n<p>In the same way, spend analytics software gathers information about what you&#8217;re buying, what others are buying, how the market is behaving and what other suppliers there are. It then shows you that information in a way that you can easily understand, and it gives you recommendations about how you could make smarter buying decisions \u2013 and you don\u2019t have to do any of the legwork.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"926\" height=\"1024\" src=\"https:\/\/itelgroup.co.uk\/development\/wp-content\/uploads\/2023\/07\/power-bi-screenshot-926x1024.png\" alt=\"We empower clients with real-time visibility of spend through a series of bespoke reporting and dashboard features.\" class=\"wp-image-2647\" srcset=\"https:\/\/itelgroup.co.uk\/development\/wp-content\/uploads\/2023\/07\/power-bi-screenshot-926x1024.png 926w, https:\/\/itelgroup.co.uk\/development\/wp-content\/uploads\/2023\/07\/power-bi-screenshot-271x300.png 271w, https:\/\/itelgroup.co.uk\/development\/wp-content\/uploads\/2023\/07\/power-bi-screenshot-768x849.png 768w, https:\/\/itelgroup.co.uk\/development\/wp-content\/uploads\/2023\/07\/power-bi-screenshot-1390x1536.png 1390w, https:\/\/itelgroup.co.uk\/development\/wp-content\/uploads\/2023\/07\/power-bi-screenshot-1853x2048.png 1853w\" sizes=\"(max-width: 926px) 100vw, 926px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why old software won\u2019t cut it<\/strong><\/h2>\n\n\n\n<p>The excel spreadsheet has a special place in procurement folklore. It\u2019s ubiquitous with line items, rulers and hours spent poring over manually inserted data. They, along with other programmes and software, were game changers but now are very limited in their scope. They were made for a time when what companies bought and how companies bought was not a strategic decision.<\/p>\n\n\n\n<p>Of course, these days data is being used in very different ways by organisations, which has made life even harder for the humble spreadsheet to remain an integral part of the operation. While it\u2019s a whizz at storing, arranging and organising information, it\u2019s limited in its ability to analyse, correlate and make sense of it. It\u2019s like a librarian that arranges books neatly but can\u2019t help you find the right the bookshelf for the information you need.<\/p>\n\n\n\n<p>To extend the analogy, spend analytics make users the librarian. It makes finding the correct information simple and it makes analysing it straightforward. From that point you are able to make a host of better decisions around how and what you buy \u2013 decisions that ultimately benefit the organisation. It also makes peoples lives easier.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What can spend analytics do for me?<\/strong><\/h2>\n\n\n\n<p>In procurement organisations, or in companies that employ procurement departments, the use of spend analytics is common and widespread. It\u2019s been incumbent in those types of environments for around a decade and to that end is pretty well road tested.&nbsp; What that means for companies that don\u2019t employ procurement teams, is that spend analytics are a very safe bet; they\u2019ve also come on enough to be pretty user friendly.<\/p>\n\n\n\n<p>All that is worth pointing out because what they do behind the scenes is fairly technical. It\u2019ll take the data from all your databases, organise it, clean and&nbsp; present it in a way that is easy to digest. You get a comprehensive view of the company and you get to see where you\u2019re spending money and where there\u2019s potential to make savings. But that\u2019s not all.<\/p>\n\n\n\n<p>Comparing your data to that of the market gives you a 360 view of the context you\u2019re operating in. It gives you leverage to negotiate with suppliers who are giving a competitor a better price; it helps you to mitigate risk if notice bottlenecks in supply from key vendors \u2013 it can also help you to predict future price with relative accuracy and to plan your budget accordingly.<\/p>\n\n\n\n<p>In short, spend analytics will help your company to perform better. You\u2019ll make better decisions, you\u2019ll save money and you\u2019ll stay competitive \u2013 and you\u2019ll do so with relative simplicity. As such, these aren\u2019t a nice to have anymore \u2013 they\u2019re essential.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crucial role of digital transformation in procurement, enhancing efficiency and unlocking savings through strategic data utilisation.<\/p>\n","protected":false},"author":2,"featured_media":2647,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Spend Analytics Can Improve Your Procurement - I-Tel Group<\/title>\n<meta name=\"description\" content=\"Spend analytics - do you know how much you spend on indirect goods? I-Tel Group can typically save organisations 15% in the first month.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/itelgroup.co.uk\/development\/news-updates\/how-spend-analytics-can-improve-your-procurement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Spend Analytics Can Improve Your Procurement - I-Tel Group\" \/>\n<meta property=\"og:description\" content=\"Spend analytics - do you know how much you spend on indirect goods? 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