Spend Analytics In current situation of covid 19 how spend analytics - PowerPoint PPT Presentation

Spend Analytics In current situation of covid 19 how spend analytics can help procurement ?

Covid 19 Global Impacts • World is closed Businesses are closed, global • disruption Work from home – Home office • Global supply chain disruption • Lead time and volatile prices • Businesses filing for • bankruptcy • Effects on human workforce

Typical effects of prolonged economic recession time

What has impacted you as a procurement professional the most?? Supply chain disruption Working from home Poll question Social distancing Not enough data visibility to make decisions

Business Continuity… Few immediate measures to ensure business continuity!

Encountering and taking actions to combat short and mid- term effects of Covid-19 Slide credit BK Consultancy

Assurance of Operations Key activities for Finance and Supply Chain Slide credit BK Consultancy

Levers to improve cash and reduce costs Key activities for Finance and Supply Chain Slide credit BK Consultancy

Was your organization prepared for this unforeseen circumstance? Yes – We were prepared. We have low or no impact No – Not at all prepared. Poll question Somewhat – few contingency plans were in place Can’t tell

How Data can help? In what way?

Data From Technological Perspective: Supply Chain has come a long way. 90% of data ever created was created in the last 2 years, that explains the transformation we are seeing!!!

• AGILITY | End users should be able to create, edit and share their own analysis and contents, anytime, anywhere, without external intervention • COLLABORATION | Commenting figures, create new analysis or storybooks then share them with people Why Business inside or outside of their organization. Intelligence • TIME SAVINGS | Ready-to-use data, easy to query, Platform??? reducing data collection time to 0 and improving decision taking time. • MOBILITY | Performance Manager works on all mobile devices. Responsive design to have relevant displays in any context.

Let’s make it simple How do we get the desired result with the data?

Gaining visibility of Spend Business Mitigating the Supply chain Objectives Risk Agility to invest at the right time

Gaining Visibility of Spend

Visibility and control over the spend (Where should I cut costs, how should I cut costs without impacting the business) Visibility!!!! How can data support you to make a better decision? How to enforce a cost control measures based on the data?

Cost visibility – How the Data / Tool can help • Cash control – Buying Discipline should be in place and should be followed across organization. • Maveric buying must be reduced – category visibility? • Control on spend - flag the unwanted spend – route it for relevant / additional approval – whch will raise awareness of spend • What is going out everyday? Daily Transaction visibility? • Is there any credit possibilities? Any early discount possibilities?

Spend Visibility

Invoices Monitoring

Payment Monitoring

Mitigating the Supply chain Risk

Supplier Analysis and Health check Third Party Risk / Contractual Risk Risks Supply Chain Risk

Risks – What can be done with the Data / Tool? • Risk assessment of Supplier Risk, Supply chain risk can be included • Financial and credibility assessment with Dun & Bradstreet, Bureau Van Dijk, Credit safe Third party tools like Risk Methods , • Ecovardis Monitor supply chain routes and • disruption Rework single source strategies • Rework global source strategies • • Supplier Development strategies

Risk Assessment

Ability to find Opportunity

Working Capital Management Savings Opportunities Opportunities Supplier Development Opportunities Identify the Right Supplier Mix

Savings • Identify savings opportunity • Local and global cash saving opportunitities • Implement those and monitor closely

Savings Potential

How many of you think Technology can help / support you in this situation? Strongly Agree Somewhat Agree Poll question Do not Agree Can’t tell

Challenges of Data At the “age of Big Data”, many challenges for procurement organizations are still leading to a lack of visibility on the procurement data: Many different data sources (best of breed software for • contracts, sourcing, ERPs for P2P, excel for SRM….). • No dedicated tool implemented. Data warehouses under the responsibility of IT or other business departments. Different objectives depending on different stakeholders • (procurement vs finance vs production). No way to share information with suppliers with such internal- • only tools.

Spend Analytics Current Scenario • Analytics is growing as capturing and the importance of data is growing. • The Spend Analytics Market was valued at USD 1.61 billion in 2019 and is expected to reach USD 4.33 billion by 2025, at a CAGR of 17.9% over the forecast period 2020 – 2025 • Major players in the market for Spend Tools are SAP (Ariba), SAS, IBM, Oracle, Coupa, Zycus, Ivalua, Synertrade, Proactis, Jaggaer etc. • Fastest growing region – Asia Pacific • Largest Market – North America

Solution Map – Spend Matters

Analytics Platforms - Gartner

Demo time…. Let’s see few examples on the tool…remember this is dummy data..