big data analysis with a small budget for purchasing spend analysis
DESCRIPTION
Even before “Big Data” Purchasing groups were swimming in data and struggled to put it to effective use.The success of Strategic Sourcing methodology had the effect of identifying and standardizing the types and format of information that can be used to drive improvement. For almost no cost you can conduct deep spend analytics with this simple processTRANSCRIPT
Bill Kohnen July 2014
Big Data with a Small Budgetfor
Purchasing Spend Analysis
You Do Not have to spend lots of money on complex analytic tools to obtain the most relevant spend analytic information.
Bill Kohnen July 2014
Introduction• Big Data and Analytic Solutions continue to be a
point of focus
• Even before “Big Data” Purchasing groups were swimming in data and struggled to put it to effective use
• The success of Strategic Sourcing methodology had the effect of also identifying and standardizing the types and format of information that can be used to drive improvement
Bill Kohnen July 2014
Take Action
• Using Fairly basic Microsoft office functions you can conduct valueable analysis of lots of data
• You can do this without expensive specialized software that requires lots of training, support and on going cost
• Using this basic process may ultimately make you decide to pursue a specialized analytic tool set but by then you will understand very well what your needs and expectations are
Bill Kohnen July 2014
Get Basic Data From AP or ERP SystemHave a Senior level person with broad knowledge review and add other data as needed. A Senior person will save time as they will know the data and be able to make educated guess’s about any gaps on their ownSample End Format For Illustration
Supplier2012 Spend
2013 Spend
2014 YTDGrand Total
Category Owner BusinessPayment Schedule
Demand
Acme Spend $ 3,500,000 $ 1,500,000 $ 5,000,000 Direct Alex Aerospace N30 MRP Demand
Beta $ 5,000,000 $ 3,000,000 $ 300,000 $ 8,300,000 IT Ben Corporate N90 Capital Plan
Food Services
$ 120,000 $ 120,000 $ 70,000 $ 310,000 HR Kate Corporate N30 Monthly Recurring
Delta $ 300,000 $ 310,000 $ - $ 610,000 Facilities Kate Corporate N30 Annual Recurring
X Tron $ 850,000 $ 1,850,000 $ 1,250,000 $ 3,950,000 Indirect Jane Medical As NeededAs Needed Approval
Bill Kohnen July 2014
Create Pivot Table
Bill Kohnen July 2014
Chose What You Want To Review
Choose Fields You Want To Review
Bill Kohnen July 2014
Example of Top Suppliers
Bill Kohnen July 2014
Build An Analytic Dashboard That Meets Your Needs
Bill Kohnen July 2014
Summary
• Take advantage of the tools you have and the simple process described to generate value from purchasing spend analysis
• There will be immediate payback
• You will better prepare yourself for understanding what new tools might add more value later