spend analysis

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Assignment: Goods Spend Analysis in My Organization – Company N
The objective of this essay is to describe components of a goods spend analysis in the organization that I am currently working for - Company N. It is composed of three major components: the steps I would use to conduct goods spend Analysis in Company N, the specific key triggers and how spend analysis would fit with the organizational procurement strategy. I will apply the appropriate concepts and tools from the Session 1 of this Module to analyze the components above and provide detailed explanations.
I. The steps I would use to conduct a goods spend analysis for my organization
In my organization I am not aware of a Spend Analysis Tool/Database set up to perform the
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For example, as far as I am aware of, our company’s different office locations are using different vendors for paper supplies, paper shredding, coffee supply. This can be evaluated and vendors can get consolidated where it is appropriate.
Step 5: Make reports of the spend data analysis and make recommendations to achieve cost saving.
The analytical spend analysis needs to be put in a formal report and presented to senior management and/ or relevant department manager. Ideally, the report should be developed into a generic format so all future reports follow the same capabilities. One important point is to make sure this report will be kept as a record for long-run reference perspective. Spend Analysis tools e.g. software/database are available in the market and it is highly recommended to purchase such tools to make reporting easier and to save manual labor cost.
Recommendations on the areas for cost reduction will be proposed based on the findings of the spend analysis. Recommendations should be clear, concise, realistic, and achievable and should be communicated to people who need to be informed.
II. The specific key triggers and why I choose them
The most critical trigger for Section 1 where the processes are elaborated is to identify cost-saving and cost-reduction opportunities to contribute to the company-wide Cost Saving Initiative and to improve the business efficiency of the organization.
The reason I choose it is company N’s
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