Importance of data analysis skills in Spend Analysis - Essay Example

Comments (0) Cite this document
Data analysis skills are very vital for spend analysis despite the emergence of a number of automated software solutions. Having strong data analysis skills benefits an organization as well as its suppliers. It enables a company to better plan the spend strategies and gain an understanding of pricing proposals by the suppliers…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.4% of users find it useful
Importance of data analysis skills in Spend Analysis
Read TextPreview

Extract of sample "Importance of data analysis skills in Spend Analysis"

It enables a company to better plan the spend strategies and gain an understanding of pricing proposals by the suppliers. The reports obtained using software solutions are generally unable to provide information about daily planning and purchasing activities. The data no doubt is available in the systems but skills are needed to access data, manipulate it and use tools to generate business insights from the data. Many a time spend analysis projects seem to be simple database applications and may be tackled through use of in-house solutions such as SQL, Microsoft Access, Business Objects and Cognos. Smaller firms may even prefer manual solutions or Excel. Lately packages solutions have gained popularity. Spend analysis software solutions do help companies to have a greater visibility of their data but the analysis part requires a lot of skills and manual intervention. Therefore, the procurement managers keep this aspect in mind while initiating spend management projects and also while recruiting employees for spend analysis. Most of the large organizations use ERP software packages for increasing their data visibility. However, these systems are not enough for spend management activities. ERP contains incomplete data and duplicate vendors. The data is not as dynamic as needed for spend management. Many companies may refresh their systems once in a week or month. However, real-time changes are essential to be monitored for spend management. Use of structured methodologies such as Six Sigma in Spend Management Structured methodologies such as Six Sigma have been used by many organizations for Spend Management. The basic purpose of using Six Sigma for Spend Management is to remove inefficiencies, leakages and injudicious spending caused due to uncertainties involved in the production planning process. However, six sigma initiatives in spend management may fail if the organization is not well prepared for the change. The biggest cause of failure is the inability of firm to decide strategic goals and to measure outcomes against these goals. For making six sigma methodology successful, organizations need to enhance visibility of supplier and customer data. This leads to effective spend management. The visibility can be improved by use of software packages and ERP solutions. However, it is not judicious to rely solely on these packages and human analysis is needed at multiple stages. Once the tracking and monitoring have been set up, it becomes easy to establish baselines and measure performance accurately leading to success of six sigma projects in spend management. Several Fortune 100 companies have made use of softwares such as Zycus Spend management software for successful implementation of Six Sigma in spend analysis. This software can be easily interfaced with the current IT infrastructure such as Business Intelligence tools and hence generates maximum benefits at minimum cost (Loganathan,C.). Therefore, a combination of skilled manpower and efficient software packages enable an organization to use structure methodologies such as Six Sigma in their Spend Analysis initiatives. Role of functional departments such as Finance in Spend Management Spend Management is not the sole responsibility of Procurement department in an organization. Other departments such as Production, Finance, Accounts, IT and even Marketing have significant roles to play in making spend management decisions. Finance department can especially be used as partner in spend analysis initiatives. It is the responsibility of Finance department to track the progress in Spend management and documents the savings achieved. These savings must then be rolled up to various departmental budgets so that they are utilized in the most optimum way. In this way, instead of making extra expenditure Read More
Cite this document
  • APA
  • MLA
(“Importance of data analysis skills in Spend Analysis Essay”, n.d.)
Retrieved from
(Importance of Data Analysis Skills in Spend Analysis Essay)
“Importance of Data Analysis Skills in Spend Analysis Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Importance of data analysis skills in Spend Analysis

Data Analysis

...?Data Analysis Data Collection The data used for this study is drawn from two sets of data: Jobseekers Allowance claimants and Unemployed persons. Although the file downloaded contains datasets for the whole of England and Wales, this research will only extract data for the 32 cities of London. Data for unemployed persons was obtained from the Annual Population Survey (APS). The APS is conducted annually during which information on the number and percentage of people who are employed, economically active, unemployment rate and economically inactive is collected. The APS is intended to be representative of the whole of the...
7 Pages(1750 words)Coursework

Data analysis

...and # Statistics in Public Relations Why is statistics important to Strategic Communications? Statistical data and analysis is important to Strategic Communications because this is a way that businesses can determine what type of decision to make regarding a product development strategy or the best ways to market to specific groups of consumers to get better sales. As one example, an educational publishing company, which is getting ready to bring out a new edition of a textbook, must determine first what consumers (teachers and students) liked, or did not like, about the current edition (Churchill and Iacobucci 565). The data gathering process is...
5 Pages(1250 words)Essay


...?SPSS APA, 10 pages Question Descriptive Analysis Table shows the various variables, their question numbers, correct measures and the descriptivestatistics which are appropriate for each of the variables. Variable # Name Question # Measure Central Tendency Value Dispersion Value 1 Totspent 2 Scale(Ratio) Mean 158.59 SD 90.78 2 Watchtv 3 Nominal Mode 1 - 3 Tvprogram 4 Nominal Mode 3 - 4 Tvnewsviewer 5 Nominal Mode 1 - 5 Newstime 6 Nominal Mode 4 - 6 Surfnet 7 Nominal Mode 3 - 7 Websitevisit 8 Nominal Mode 3 - 8 Smartphone 9 Nominal Mode 2 - 9 Location 10 Ordinal Median 2 Percentile 1.50; 4.00 10 Distance 10 Ordinal Median 4 Percentile 2; 4 11 Wine 10 Ordinal Median 4 Percentile 2; 5 12 Chef 10 Ordinal Median 4 Percentile...
10 Pages(2500 words)Case Study

Data Analysis

...Installation of Computed Radiography and Increased Productivity of the Images Faculty A study was conduted to know whether the productivity has increased after the implementation of computed radiography in the hospitals in Riyadh. For this study, fifty respondents were selected that consisted of 10 female (20%) and 40 male (80%) respondents (figure 1). As can be seen in figure 2, the highest qualifications of respondents were Diploma (40%), BSc (40%), and MSc (20%). As can be seen in figure 3, the total years of experience in their profession of respondents were 0-5 years (14%), 6-10 years (70%), and 10-ablove (16%). This report will analyse the association between increase in productivity and decrease in cost, decrease in lost... of Computed ...
3 Pages(750 words)Essay

Data Analysis Skills for Economics and Accountancy

...Data Analysis Skills for Economics and Accountancy Question 1. (B Figure Change in Annual Inflation rates for UK and Germany B.2) Figure 2: Number of airline passengers in UK Regression Coefficients Model Un standardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 Constant 108218.764 2537.562 42.647 .000 Year 7461.236 374.143 .989 19.942 .000 Dependent Variable: No. of Passengers 2. (A) The first chart compares the inflation rates in United Kingdom and Germany over the period of 1999 to 2009. The data for the last half of the year is not accounted for both countries in 2009. After analyzing the graph we can conclude that the change in inflation rate is scattered intermittently for both... ...
8 Pages(2000 words)Essay

Data Analysis

...Analysing Politics Section I: The Research Problem/Question The research question pertains to the British election study. This relates to the voting behaviour of the people and understanding the political behaviour of the nation in the pre election survey. This consists of collection of data, analysing and interpreting with a view of changing politics. The data were collected comprised of face to face interview, internet survey and continuous monitoring of the internet survey. The research question is important in the aspect of changing of people behaviour with regard to politics. The focus is mainly on analysing the factors which influenced mind during voting, particularly how their...
9 Pages(2250 words)Essay

Data Analysis

...Langdale Ambleside Mountain Rescue Team Incident Report Langdale Ambleside Mountain Rescue Team Incident Report 2012 The paper attempts to discuss the number of incident taken place at Lake District and various causes for such incidents in the mountainous region. The paper provides a descriptive statistics and pictorial representation of incidents in the region. Reasons for incidents Langdale Ambleside Mountain Rescue Team is a professional volunteer group which helps mountain climbers in trouble. An average of 100 incidents occurs each year in the Lake District and it has been the mission of the rescue team to limit the number of incidents in the particular area (LAMRT, 2012). The various reasons of incidents and how... Ambleside Mountain...
4 Pages(1000 words)Essay

Data analysis

...Statistics Data Analysis Task This experiment requires the Western blotting analysis of Akt with a rapid transfer of about 293 cells with Akt, phosphor-AKT. The experiment uses AKT to represent the upper blotting while the phosphor-AKT represents the lower blotting. It proves that the Phospho-Akt Antibody cannot detect the presence of Akt when the alanine is substituted in Ser473. The AKT and phosphor-AKT measurements in kDa ranges from 46.5 to 165 kDa, while in HA, the range is between 28 kDa to 105 kDa. The experiment consistently use 293 cells with the three different antibodies, with the PGDF timing maintained between 0 and 120 Minutes. The Experiment of Western blotting...
2 Pages(500 words)Essay

Data analysis

... a slightly lower acceptability (67%) because there is a probability that the bridge is existence but cannot be used as it is still in its new state. existing but still in its new state thus making the sentence slightly incorrect when put in future tense. 2 What do these data suggest about the interaction between syntax and semantics in second language acquisition? The given data suggests that the relationship between words and their meanings should follow certain rules so as to convey the message intended in a clear way 3. Consider sentence 7, the translation equivalent of which is possible in Spanish, the acceptability of the sentence is low. How can you account for this? The acceptability of the sentence in Spanish because... School...
2 Pages(500 words)Assignment

Data Analysis

...Task1 (30 marks) For this task, you will first need to generate your own population that is unique and has almost no chance of bearing any similaritywith the one generated by any of your peers. a Prepare your population dataset: In Excel, click on Data/Data Analysis/Random Number Generation. When the box opens, type (i) Number of Variables 1 (ii) Number of random numbers R = 800 + X + Y + Z + W Here, X is the number that corresponds to the position of the first letter of your first name within the English alphabet; Y is the number that corresponds to the position of the second letter of your first name within the English alphabet; Z is the number that corresponds to the position of...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Importance of data analysis skills in Spend Analysis for FREE!

Contact Us