There are a few ways in which you can create value from spend analysis. Let’s have a look.
#1. Leveraging Consulting Data
Evaluate your consulting expenses to gain insights. Engage a data scientist and use traditional methods to identify patterns, outliers, and areas for improvement. Focus on spending efficiency, comparing costs between firms, and evaluating performance with different business units.
#2. Improving Consulting Sourcing
Organize competitions among consulting providers to compare skills, gain new ideas, find the right fit, and get better value for your money. Write RFPs creatively, focusing on problem-solving and providing relevant information about your company. Align the procurement process with your strategic goals.
#3. Implementing Demand Management
Centralize consulting expenses and formalize the process. Choose projects strategically based on their budget viability and evaluate consulting firms’ performance. Sequence projects throughout the year to balance short-term and transformational initiatives.
#4. Managing Tail Spend
Take control of small consulting projects that are often overlooked. These projects can account for a significant portion of spending. Implement tail spend management to save money and ensure these expenses are monitored.
To gain a thorough understanding of spend analysis, please go through this definitive guide titled “Spend Analysis for Consulting”.
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