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Vista Group is a boutique IT strategy consulting firm. We provide business solutions in spend analysis by using data science and converting data into business insights. Vista helps businesses to improve visibility to their IT sourcing data, and total IT spend under management. This ultimately serves the decision making process and leads to cost reduction, operational changes, improved flexibility and agility in the IT organization and directly impacts short and long term profitability of the company.

 

What is Spend Analysis?


SpendAnalysis

Spend analysis is the process of collecting, categorising and evaluating expenditure data, either by human hand or through software.

Spend analysis is performed by companies to increase profitability through identifying wasteful spending and flagging contracts that can be renegotiated. CPIOs and CFOs use spend analysis to help the global companies, to have better visibility on spend and identify saving opportunities. Read more…

Who needs it?


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However, good spend analysis is much more than that. It is the process of organizing a company’s spend in such a way that one can understand it, slice it, dice it and uncover hidden savings opportunities. Additionally, it impacts more than just the sourcing team. Spend analysis / visibility serves three internal user community groups:

Leadership and CxOs: who need up-to-date reports to drive strategic direction

Managers, accountants, etc: 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.

Why ERP Systems Are Not Enough


ERMERP systems used many different approaches but they eventually focused on three main areas: vendors, commodities, and cost centers.

Spend Analysis originated when they realized that the ERP or accounting system data did not adequately support sourcing because it’s generally incomplete, contains duplicate vendors, does not contain good commodity information, and is far more static than spend data which changes all the time. Read more…

How it affects your Strategy


StrategyStrategic approach to sourcing is essential for achieving immediate needs as well as for sustaining enterprise-wide cost reductions. Locating a supplier and pricing an item simply isn’t enough. Sustainable savings come from identifying cost-cutting opportunities, defining and executing a supplier selection process, and creating contracts that convert them into actual savings. And this requires being able to evaluate the total cost impact of sourcing decisions, while shortening the amount of time and effort spent on administrative tasks. Read more…