Effectively rationalizing your company's supply base to generate visible savings, while meeting the needs of your stakeholders, requires a fine balance of quickly identifying your best opportunities for savings and understanding the full extent of your buying power by negotiating more effectively with suppliers and reducing maverick spending and contract leakage. To accomplish these objectives, it is essential that you understand how much you're spending, with whom, and on what. You also need specific information about supplier prices, contract, performance, and optimization opportunities.

The SAP Spend Analytics application is a purpose-built, business-user focused application that brings together essential procurement measures across multiple dimensions of an organization. The application can help you establish key performance indicators, conduct in-depth analyses, identify hidden negotiation power, and launch procurement initiatives that can cut costs and match sourcing strategies to your strategic business goals.

With SAP Spend Analytics, you can empower the purchasing organization by providing the following:

• Analyze company spend across your business dimensions, assign a goods and services classification structure, and determine whether a supplier has diversity status or is a credit risk
• Identify savings opportunities – Provide self-service analysis and reporting access to procurement staff, to provide insight into hidden opportunities and negotiation power
• Design sourcing strategy, and capture category, supplier, and item data directly from SAP Spend Analytics into the SAP E-Sourcing application with an audit trail
• Quickly respond to business needs that are changing due to increased competitive pressure, greater economic globalization, or new government regulations

Expanded Functionality for Spend Analytics

With the latest versions of its enterprise performance management solutions, Business Objects, an SAP company, is providing expanded functionality for SAP Spend Analytics. With these enhancements, SAP Spend Analytics can empower you to extend enterprise performance management from finance into procurement, so you can benefit from closed-loop integration with strategic sourcing processes, along with better strategic procurement planning to reduce spend.

In addition, SAP Spend Analytics has been enhanced by technology and services resulting from the acquisition of Analytics Inc., a leading provider of spend data standardization and enrichment services for procurement.

Learn more about the expanded functionality of SAP Spend Analytics.