Goods Spend Analysis

In: Business and Management

Submitted By rommy
Words 993
Pages 4
NAME: ROMOKE OJO MODULE 2 SESSION 1

STUDENT ID # 2001691 GOODS SPEND ANALYSIS ASSIGNMENT

Goods spend Analysis is the process of organizing a company’s spend, leveraging

spend data for the purpose of gaining visibility into cost reduction, performance

improvement and uncovering hidden savings opportunities. Spend Analysis consist of

three different components which are; Suppliers, Customers and Commodities and

Services. Each component should be measured in dollars and number of transactions

which should be a potential source of improvement and cost saving. I believe spend

Analysis serves three internal user groups in a company which comprises of:

❖ Leadership of the organization usually the chief executive officer and chief

Operating officer who needs up-to- date reports to drive strategic direction.

❖ Managers, Accountants or Chief Financial officer who need to drill down into a

spend data set to explore specific areas of interest or track down payment

specifics.

❖ Sourcing power users who need to locate, drive, and monitor the next set of

savings initiatives.

Goods spend Analysis consists of both direct and indirect spend and my organization

deals with both. I will be discussing the various steps I will use in conducting goods

spend analysis in my organization.

The first step is to identify the system containing spend data in my organization; there

are many systems and sub-systems such as accounts payable, invoicing systems,

purchase order management, expense report data, agreements and contracts, policies,

purchasing card data etc.

The second step is collecting the spend data from identified sources, because of the

complexity of the organizations accounting systems, there are multiple processes…...

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