Post-Sourcing Category Analytics
With ever increasing savings targets, organizations of the future need cleansed data and advanced analytics to make continuous decisions on their category. Our technology-enabled managed service, Insight Analytics, allows organizations to get out of the data clean-up and shift their attention to taking action on insights the data uncovers.
Insight Analytics uses a three-phase approach to convert analysis into value-generating insights and actions:
- Collect detailed data from supplier usage reports, AP systems, contracts, and other data sources
- Analyze data using Insight Analytics’ proprietary analytics methods and algorithms to search for enhanced savings opportunities
- Leverage detailed category analysis to uncover impactful insights:
- Mitigate savings leakage
- Capture additional savings
- Provide customized reporting dashboards for each category to display critical decision-making data
- Identify concrete steps to take to recapture savings and increase category compliance
- Prioritize actions based on complexity and dollars at stake
- Execute actions with suppliers and/or internal stakeholders
- Report actions and outcomes to company executives
“Insight Analytics helped our organization drive an drive an additional $2.5 million in a single category by identifying savings leakages due to overcharges, rate non-compliance, and high-service frequency.”
Chief Executive Officer
PT PROJECTS SNAPSHOT
- Delivered 3-year savings of $110MM (14x ROI) and established internal procurement function for $50B retailer
- Drove 9% savings on over $115MM in annual spend and established an internal procurement team and capabilities to continue driving value for the organization
- Delivered over 15% in year-over-year savings for capital equipment purchases and designed internal procurement organization for $400M data center colocation provider
Point of View Perspective
Sourcing Project Accomplished…Now What?
Best Practices to Make Your Savings Stick
You have probably seen the statistics showing that the leading companies on the Fortune 500 have approximately 70% to 80% of their indirect spend under management. These mature organizations can also achieve anywhere from 2% to 4% incremental savings year over year on this spend through optimizing the procurement strategy for just their indirects.
How are they doing that? How does your company stack up?
“We partnered with the team at Insight Analytics who provided a summary of insights on our Small Parcel Shipping by analyzing service type, reviewing accessorial charges, carrier mix, and performing a volume trend analysis. They were able to identify an additional $700,000 in savings for our organization.”
Michael van Keulen
Director of Global Procurement
lululemon Athletica Inc.