Savings opportunities identified through data-driven analysis.
Cost savings initiatives must be based on a solid spend analysis. This serves as a starting-point for identifying saving opportunities and as a benchmark to verify claimed savings. In this analysis, different kinds of data are gathered, including: spend, number of suppliers, spend per supplier, spend per cost center and G/L account, comparison of measured values with benchmarks, and so on.
The identification of saving options is carried out per commodity and preferably in interdisciplinary teams to ensure involvement of the different stakeholders. Identified alternatives are analyzed to determine the savings potential (quantitative) and impact (qualitative). The outcome of the analysis is used to set priorities and to decide on the implementation of saving initiatives.
AT A GLANCE