Agicap is the Treasury Powerhouse built to do just automated spend analysis that, moving you from chaotic, siloed processes to a state of complete financial control. Ensure it integrates with existing UK accounting and ERP systems to create a single source of truth. The goal is to eliminate manual entry and paper by enforcing all payments and expenses go through the digital system.
Can Sievo Spend Analytics help with sustainability or ESG goals?
If not, as Dr. Graham Smith, formerly a supply chain management consultant, explains, the solution should alert you about the violation and help you prevent any further unauthorized spending. As such, it helps protect your organization from the consequences of non-compliance and maverick spend. Essentially, this software keeps track of the contract terms and ensures that both you and your suppliers are compliant with the agreed-upon conditions. Let’s take a step back from the tools you’d typically think of when considering spend analysis. Namely, 28% of the surveyed professionals stated that it is precisely ineffective software that makes spend management difficult for them. But modern data visualization tools changed that, empowering everyone within the organization—including procurement—to present data in a simple way and really make use of it.
Leverage Spend Data to Drive Smarter Decisions
At its core, spend analysis software helps organizations gain greater visibility into their spending and better understand how they’re allocating funds. It typically incorporates features like data cleansing (which eliminates duplicate entries or incorrect information) and analytics (which provide insight into trends). AI-driven spend analysis software goes beyond basic reporting by proactively identifying spending anomalies, cost-saving opportunities, and supplier risks. These AI-generated insights help businesses make data-backed decisions that optimize procurement efficiency.
Enhanced visibility
Perhaps the most transformative development on the horizon is the emergence of AI agents in procurement. These intelligent systems go beyond passive analytics to become active participants in procurement processes—identifying opportunities, initiating actions, and operating with increasing autonomy. By making the platform accessible across finance, sales, and accounting, BT Sourced freed its procurement team to focus on strategic initiatives while empowering stakeholders with self-service analytics. Spreadsheets and pivot tables serve as an entry point for organizations with limited spend data, straightforward purchasing patterns, and early-stage procurement functions. While accessible, they quickly become inefficient as data volumes and analytical requirements grow.
- Create feedback loops so users can report problems and see them corrected quickly.
- Automated tools should be integrated with live data streams wherever possible.
- Repeated maverick purchases can be moved to in-system spend by adding the option to the online marketplace in your own custom catalogs.
- Despite this, when integrated with an ERP or your procurement software, they can be a powerful tool for visualizing, understanding, and tracking spend data.
- Implement interactive dashboards to present findings to stakeholders, enabling data-driven decisions that deliver measurable procurement improvements.
- The move toward automated spend analysis isn’t just about making life easier – though it certainly does that.
- These metrics help businesses understand not just how much they’re spending, but whether that spending aligns with company goals and budget priorities.
Additionally, machine learning tools can be trained to improve classification accuracy over time, learning from manual corrections and feedback loops. Organizations should also consider a hybrid model where automation is supplemented by human oversight, particularly in complex or non-standard transactions. For example, marketing, IT, operations, and finance departments might use different platforms to manage expenses, leading to fragmented or siloed data.
- By renegotiate contracts, optimize relationships , and improving purchasing practices, spend analysis helps drive strategic, long-term cost reductions.
- Spend analytics provides the foundation for data-driven category management solutions.
- Chatwal also highlights the importance of consistently validating and refining the data you have on your suppliers.
- Jaggaer is a large source-to-pay solution built upon the acquisition of different software solutions including BravoSolution and Pool4Tool.
- Here is how Sievo, one of the most well-known spend analysis tool providers, explains what their software can do for its users.
Instead, we offer first-hand observations and guidance based on decades of practitioner experience to help you self-assess your needs and options. Spend analysis is a business process involving collecting, cleansing, classifying, and analyzing expenditure data. We saved more than $1 million on unearned revenue our spend in the first year and just recently identified an opportunity to save about $10,000 every month on recurring expenses with PLANERGY. Zapro empowers every person in the procurement process to achieve their goals. All you have to do is input supplier criteria into our supplier discovery platform, and Veridion will do the rest.
Automated spend analysis provides actionable insights by highlighting vendor and product overlap, employee overlap, and areas of redundancy. When combined with accounts payable automation, it can free up your accounting department to focus on more strategic priorities. Automated spend analysis works by compiling spend data from various sources, such as your ERP system, the general ledger, or purchase orders, and organizing that data into user-friendly spending dashboards. The information in a dashboard can be high-level data, or it might be broken down into more specific classifications such as location, department, expense category, or vendor. Before performing spend analysis, either manually or with automation, you’ll need to identify your data sources and scope, as well as the metrics and KPIs involved.
Generate average of $20M incremental savings for every $1B analyzed
Payment term spend analysis gives a comprehensive view that enables you to identify unrealized payment term discounts, late payment interests, or opportunities to negotiate better payment terms. This capability is handy for non-technical users who require prompt answers to inform their decision-making. Common use cases include budget reviews, supplier evaluations, category planning, and executive briefings.
Spend analysis software helps organizations track, analyze, and optimize their spending patterns by consolidating financial data from multiple sources. It provides visibility into spending habits, supplier relationships, and cost-saving opportunities, enabling data-driven decision-making. Key features often include data visualization tools, customizable reports, and automated classification of expenses for easier analysis. By identifying trends and inefficiencies, the software allows businesses to negotiate better contracts, reduce waste, and improve budget Liability Accounts management. Many spend analysis tools also offer real-time data synchronization, ensuring up-to-date insights for financial planning.
This delays the realization of cost savings and efficiency improvements, resulting in missed opportunities as organizations wait for full spend visibility and actionable insights. GEP Smart is a spend management platform that helps organizations identify cost-saving opportunities and make informed procurement decisions. It offers a range of features that make it easy to analyze spending patterns and optimize procurement strategies from end to end. Once implemented, an automated spend analysis tool typically follows a repeatable process from data ingestion to insight delivery. It begins by extracting spend data from source systems such as procurement software, payment records, and contract databases. Advanced tools use automation protocols to pull this data at scheduled intervals or in real time.