Future Spend Data Analysis

"You can't influence history, but you can influence the future"

To achieve the maximum impact, focus on what you will spend in the future, so that you can determine the type of influence and resources you need to deploy over the next two to five years.

The maximum impact should be better deals with suppliers and better results over the duration of contracts, primarily from effective and considerably more active, management of supplier, and buyer, performance. Future spend analysis allows you to:

• Acquire directly relevant new and/or refresh existing skills and knowledge
• Hone the application of skills and knowledge
• Improve all aspects of your purchasing process
• Make potential suppliers more aware of future business opportunities
• Enhance your reputation so as to be the customer of choice for the very best suppliers

To achieve this level of performance there are no short cuts, we work closely with you through each step of the process. This embeds the process and transfers the skills and knowledge you will need to do this yourselves in the future. The process steps are:

• Analyse historical spend data; learn from the past to help focus on where to gather future spend data and information
• Formulate conclusions from the results of the historical spend data analysis
• Gather future spend data and information and apply assumptions to establish accurate forecasts/estimates
• Analyse future spend data, keeping in mind the assumptions used to establish forecasts/estimates
• Formulate conclusions from the results of the future spend data analysis
• Contrast the conclusions from the future and historical analyses
• Formulate a future purchasing plan, publish it, develop category spend and contract specific strategies, plan resource type and availability, improve/refresh existing skills and knowledge etc.

• Compare, in say one or two years, the conclusions you reached from the future spend analysis to what actually happened

This is not for the faint hearted, or those who lack anything other than total commitment. It requires high level support and wide ranging cooperation from all areas of your organisation. However, it is thought provoking and extremely valuable. You'll set yourself apart, by a considerable margin, from your peers, especially if you are in the public sector. If you can commit then so can we, please contact us for an initial conversation.