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 equips companies with executable plans to retain and maximize savings after sourcing is completed. Post-sourcing, many spend categories aren’t actively managed and companies face challenges in keeping savings. Our unique technology-enabled managed service works hand-in-hand with Insight Sourcing Group’s strategic sourcing offerings by applying machine learning and complex analytics techniques to the procurement space. By mitigating savings leakage and uncovering additional savings opportunities in recently negotiated contracts, Insight Analytics’ clients can ensure best-in-class savings outcomes from their sourcing events over the long-term.
Savings Challenges Solved by Insight Analytics
After you gain visibility into spend and set out a sourcing strategy, how are you proving that savings are realized? Are you able to identify new saving opportunities between sourcing events? Learn more about how we address each issue by clicking the dropdown that best fits your scenario:
Each stakeholder in your company will receive ongoing updates to a self-service dashboard. This dashboard contains data from your Accounts Payable system and suppliers to identify instances where the wrong supplier is used, or an incorrect price was transacted.
Our proprietary demand management methodology allows companies to see opportunities to consolidate SKUs or change service mix. These behavioral changes can be complicated to find and even more so to implement. Using our action plans we can help drive the conversation to combat resistant stakeholders.
For certain categories, an index or outside market data becomes critical in tracking the timing of launching a new sourcing event. Additionally, if pricing is pegged to indices this tracking will ensure the correct price is warranted. Large categories allow us to provide benchmarking data for your category stemming from our experience in over 4,000 sourcing events.
“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.