Of what good is good data if it is not put to good use? Lining up your spend and supplier data in a row is a nice start to your spend analysis journey. But that’s just the beginning. Getting the most out of any spend analysis initiative hinges on how well the insights have been put to use to discover new opportunities or improve sourcing efficiencies. Hear from the practitioners on their data-to-analytics journey and their use cases of leveraging spend analysis to drive better sourcing and procurement decision making.
Distributor of Toyota since 1968 to over 175 dealers. Account for 20% of all Toyotas sold in the US (retail and fleet). We buy the cars from Toyota, accessorize them and wholesale them to the dealer in our region.
Mention which modules of Ariba we use.
How did our spend visibility journey begin?
As is common with many companies we were asked questions about our spend that was not readily available. The information was not house in one common area
Common questions were asked that I am sure are asked by many companies
Many source systems exist that contained the needed information. Each source system had it’s own reporting tool and numbers had to be consolidated using Excel.
Had to match up fields from each source system to consolidate the information
Grueling task that took a long time to manipulate in Excel. To report on spend took a long time to get information from source system then combine information and make it presentable.
We needed insight to our spend and have it readily available.
We needed the capability to consolidate our spend by supplier across our business units and consolidate our spend by categories.
We needed information from all sources for our data to be accurate.
Different ERP system. Our dealership has a system that run the entire operations. We bought a company some time ago that does vehicle inspections for our finance company. They had their own ERP that is tailored to their industry.
We use AMEX as our P-Card provider but still need a VISA platform for those that do not accept AMEX.
Spend Vis would give us the capability to consolidate our spend by supplier across our business units.
We have one storehouse for all the spend from all the source systems. No need to use Excel to combine data and make presentable.
We have visibility into our category spend using Ariba classification. Never had this before.
We now are able to see supplier hierarchy which give buyers leverage.
Reporting can be saved and just be updated when additional refreshes are loaded.
Smooth implementation
Have to go through exercise to map fields from different source system to the Ariba fields but this would be a one time exercise.
Determine how we wanted our business structure to roll up. Parent company to subs to Business unit to departments.
Having a dedicated project manager through our implementation and the life of the contract is very helpful.
We decided to load three years of historical data to have a starting point.
We update our information quarterly.
Very helpful is the validation tool Ariba has to validate the files before loading them into the system.
Even though we need to wait for enrichment to complete is it nice for the admin to have access to the data in the system although it is not enriched.
Enrichment is done on all supplier not just the updated information.
We now have the ability to report on spend quickly. At our finger tips.
Able to analyze data from different perspectives rather easily.
See trends as we can see year over year information.
Procurement is viewed as the source for spend questions. Our internal customer rely more and more on us to provide them with the data.
Have the ability to group supplier together in a saved search like our diverse suppliers.
Ability to see the percentage of spend we influence as a procurement department. We are not mandated so this is important for us to see our impact.
Also identifies opportunities for us to become involved in
Now that we have our data in one area we are able to report spend data easily.
Our executive teams has many ad-hoc requests that we can supply information quickly.
They have insight to our critical suppliers.
Spend by area for corp comm to use in marketing materials
Start and need to do more of a strategic use of data
Our internal customers request or search on their own spend by a supplier if they have a meeting. Are able to go into meeting prepare with spend for supplier, other suppliers we use.
Business units rely on us to supply them with information used to make decisions.
Buyer now have insight to look for opportunities to source more.
Buyer have insight to areas not influencing and become involved. Better to show internal customers is black and white how many suppliers they are using.
Spend Visibility was critical to the data they needed to benchmark and transform the business unit.
Knew we had room to improve but could not isolate the areas without the data.
Data from spend showed us where the issues were not where we thought they were
The first area they were going to address was vendor optimization.
They needed to see how many suppliers we have in each category.
Could isolate the area to concentrate on first.
Could one supplier perform more then one service and have more leverage in negotiating
Needed to determine the areas we could consolidate supplier and achieve savings.
Could not focus on the right area without the data from spend visibility
Needed to see spend by our location. Needed to drill down to that level
Needed to see if there were opportunities for using a national supplier.
We categorized the spend by ACT. Then renamed the categories to what the business unit is familiar with.
We tagged the suppliers not only by the category but what service they provided to us.
Could see where most of the spend was isolated
Once all this strategic data was compiled we were prepared to determine which areas should be put to an RFP.
Also had the information needed to include in the RFP…spend, services provided.
Information from spend was critical not only in the planning stages but going in the proposals and determining savings going forward.
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