Our site uses cookies

I agree Our site saves small pieces of text information, called “cookies” on your device. Find out more in our cookie policy. You can disable the usage of cookies by changing the settings of your browser. By continuing to browse the site you are agreeing to our use of cookies.

Spend Analytics
Efficio Spend Analytics uses our own Procurement technology, tools and methodology to collate and present vast amounts of data in a meaningful way.

Data is often distributed between a large number of financial and ERP systems, across many different geographical and business entities. Purchasing activity itself may be widely distributed and can include significant unofficial, ‘maverick’ or non-compliant activity.

Efficio applies structure and analytics to deliver deep insight into categories and suppliers at many levels, linking and enriching data from many sources, revealing savings opportunities and tracking performance.

Efficio’s Spend Analytics will help you:

  • Take control of the procurement process
  • Identify savings opportunities by rationalising the supplier base
  • Take advantage of savings opportunities arising from growth and increased procurement leverage
  • Eliminate maverick and non-compliant or off-contract behaviour
  • Track and verify procurement performance and improvement

We start by agreeing a standard taxonomy: a multilevel ‘tree’ to which spend categories and individual orders can be allocated.  A route might be Indirects > IT > Hardware > Laptops.

This foundation enables us to identify all sources of data on different systems, which we then pull together into a ‘spend cube’. We cleanse and verify the data: for example, different descriptions for the same input, or different trading names used by the same supplier. The team also imports additional data such as baselines, budgets, contract details, negotiated rates and supplier data.

eFlow

Once you have this granular visibility, our technology platform, eFlow, enables you to ‘refresh’ the spend cube at regular intervals, for example by automatically identifying repeat suppliers.

The Spend Analytics module in eFlow, together with our visualisation tool, allows you to drill down into the appropriate level of the cube. Custom dashboards are easily created to suit the requirements of individual users and we train your team to use the visualisation tools.

eFlow allows you to:

  • Spot savings opportunities
  • Compare budgets and outcomes
  • Monitor compliance
  • Verify the achievement of targeted savings

Efficio's eFlow Spend Analytics enabled us for the first time to obtain detailed visibility of Fujitsu's global procurement spend. Until then this has been a significant challenge due to our organisational complexity and the large number of ERP systems we operate. The Spend Analytics tool is easy and intuitive to use and designed to support the identification of procurement opportunities.

Mikko Kivisto, Country Procurement, Corporate Purchasing Unit at Fujitsu

Our expertise

Efficio conducts more than 30 Spend Analytics initiatives with clients each year, representing over £100 billion of external expenditure so far. Our clients range from small companies to global corporations, as well as Private Equity portfolio investors.

Noteworthy clients include Fujitsu: 47 entities across 100 countries, four regions and four ERP systems, analysing millions of transaction records across $3 billion of spend. We helped it derive a prioritised list of savings opportunities and gain deep category insights to inform their sourcing strategies. Accudyne refreshes its $600 million, 7-country, 10+ systems spend cube on a monthly basis, while COOP Denmark, with a DKK 60 billion spend, refreshes quarterly.

Spend Analytics is a critical element of how we understand the value potential for our clients: we believe it should be a core part of your own operations.

Using the past to predict the future
Insight
Using the past to predict the future

How predictive analytics can mitigate supply risks and identify cost savings.

Five procurement questions every private equity firm should ask
Guide
Five procurement questions every private equity firm should ask

Efficio’s detailed spend analysis at a services group in 2015 helped identify savings that have since generated €250m in equity value for two private equity clients

How to negotiate highly engineered manufacturing products
Guide
How to negotiate highly engineered manufacturing products

Sourcing thousands of highly engineered components across the globe with high material and labour content, and high supplier change barriers is a huge challenge

How to estimate procurement synergy for M&A deals
Insight
How to estimate procurement synergy for M&A deals

Procurement plays an essential role in any merger or acquisition. Here, we outline the practice and challenges of estimating synergies before and during the deal.

Four procurement opportunities ahead in 2017
Opinion
Four procurement opportunities ahead in 2017

Toby Munyard, vice president at Efficio, talks about the challenges and opportunities ahead for procurement in 2017.