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Powerpoint Presentation on Claritum's Spend Analysis Capability
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Page 1
print spend managementprocure manage pay
Spend Analysis
In 60 seconds
Page 2 © Claritum 2009
Circle Process
Sourcing
Unique RFx (RFQ, RFI, RFP) + contract rates + spot buying
Spend Analysis
Spend assessment, powerful MI, performance dashboards, analytics
Supplier Management
Supplier onboarding, capabilities management,
performance management
Contract Compliance
360⁰ view of spend including spend limits, cost controls, supplier performance, etc
Invoicing & Payment
Invoice matching, reconciliation, ‘ok-to-pay’ file export
E-Procurement
Compare bids, raise & issue purchase orders, catalogue management etc
Savings & Efficiencies
software-as-a-service
spend management overview
Page 3
spend analysis
$
£
€
Buyers
Marketing
Office /Branch
Suppliers£
DiscoverCategoris
eStandardi
seContract Source
Spend Discovery - gather data from multiple sources- AP, ERP, Supplier systems, agencies
Page 4
spend analysis
$
£
€
Buyers
Marketing
Office /Branch
Suppliers£
£
DiscoverCategoris
eStandardi
seContract Source
Categorise - Establish a single view of spend- What was bought (specifications)- How it was bought (open /closed RFx,
contract price, etc)- When it was bought (once, ad hoc, repeated)- Who bought it (the same buyer, multiple
buyers in same business unit or dispersed buyers)
- Who it was bought from (same items bought from same or different suppliers)
- What it was bought for (quoted price, ordered price, invoiced price)
Page 5
spend analysis
$
£
€
Buyers
Marketing
Office /Branch
Suppliers£
£ £
DiscoverCategoris
eStandardi
seContract Source
Standardise - identify savings opportunities- Create catalogue of standard specifications- Predict likely volume, buying patterns- Match requirement to supplier base- Gain pricing
Page 6
spend analysis
$
£
€
Buyers
Marketing
Office /Branch
Suppliers£
£ £
$
£
€
£
DiscoverCategoris
eStandardi
seContract Source
Contract - Create Catalogue of contracted prices / volumes- Implement rules for buyers / suppliers- Deploy tools to enforce contract compliance
Page 7
spend analysis
$
£
€
Buyers
Marketing
Office /Branch
Suppliers£
£ £
$
£
€
£
Sou
rcin
g
DiscoverCategoris
eStandardi
seContract Source
Claritum Sourcing - Embed the savings by deploying Claritum sourcing tools- Ensure compliance to best practice sourcing- Enforce standardisation of specifications- Eliminate off contract buying
Page 8
Current Buying Profile
Quantity Total Buying Cost No of Sheets (Cover)500 £271 600800 £223 800
1300 £266 6001800 £918 (blank)2200 £600 13002500 £372 11003000 £324 14003060 £367 13003300 £361 14003600 £281 14003900 £558 15004000 £709 16004800 £785 20006600 £1,316 14008800 £1,781 32009900 £627 34009900 £633 3400
11500 £611 340012464 £665 3700
£0
£500
£1,000
£1,500
£2,000
£2,500
0 10000 20000 30000 40000 50000 60000 70000
Example - Global Pharmaceuticals
Buyer quote “we’re always too busy but we do buy well, we get the best price and place the order”
= major variances in price and specification, no consistency, no tools to streamline process
Page 9
Opportunity Assessment
Quantity Total Buying Cost No of Sheets (Cover)500 £271 600800 £223 800
1300 £266 6001800 £918 (blank)2200 £600 13002500 £372 11003000 £324 14003060 £367 13003300 £361 14003600 £281 14003900 £558 15004000 £709 16004800 £785 20006600 £1,316 14008800 £1,781 32009900 £627 34009900 £633 3400
11500 £611 340012464 £665 3700
£0
£500
£1,000
£1,500
£2,000
£2,500
0 10000 20000 30000 40000 50000 60000 70000
High Average
Low Average
Best Market Average
Example - Global Pharmaceuticals
Analysis showed between 15% and 50% savings can be achieved by implementing sourcing best practice and up to 80% reduction in buyer / supplier administration
Page 10
Benchmarking
Suppli
er A
Suppli
er B
Suppli
er C
Suppli
er D
Suppli
er E
Suppli
er F
Suppli
er G
Suppli
er H
Suppli
er I
Suppli
er J
Suppli
er K
Suppli
er L
Suppli
er M
Suppli
er N
Suppli
er O
Suppli
er P
Suppli
er Q
Suppli
er R
Suppli
er S
Suppli
er T
Suppli
er U
Suppli
er V
Suppli
er W
Suppli
er X
Suppli
er Y
Suppli
er Z
Suppli
er A
A
Suppli
er A
B
Suppli
er A
C
Suppli
er A
D
£0
£5,000
£10,000
£15,000
£20,000
£25,000
£30,000
£35,000
£40,000
current ‘market price’
currenthigh price
current low price
Your rangeYouropportunityRisk?
Example - Global Pharmaceuticals
Benchmarking historical performance against market prices shows opportunities for savings, without increasing risk.
Page 11 © Claritum 2009
thank you.
Contact: James Samuels
Claritum Limited251-253 London Road East, Bath BA1 7RL, UK
T: +44 (0)1225 851666
