One of the most frequent questions we get from our clients is hands down: What is the best approach to use and identify savings opportunities through spend analysis?

This is an excellent question. There are a wide variety of opportunity analyses that can be conducted directly within a good spend analysis tool.

We find many of our customers and partners following a similar path time and time again with an overarching theme of “start with the basics and generate quick wins”.



1. Identify Leverage With Existing Suppliers

As part of our spend program we commonly include supplier linkage data (parent/child) which identifies corporate families.

This is as basic as it gets – gaining an understanding of which suppliers are owned by the same parent entity. In many cases existing agreements can be consolidated and renegotiated with the parent entity.

2. Supplier Rationalization

This is a straightforward analysis commonly using the Pareto principle (80/20) that highlights how many suppliers comprise 80% of the spend for each category (…)


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