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How to reduce costs with procurement spend analysis?

Spend analysis allows firms to acquire a better knowledge of the prices of products and services and the most costly suppliers and those that meet/do not meet expectations, allowing them to alter their procurement procedures as needed.

Instead of making several smaller purchases from vendors with varying degrees of quality and performance, a preferable sourcing strategy indicated by spend analysis can help score a better price, quality, and economies of scale from a chosen supplier with an established track record and capacity.

Data from comprehensive expenditure analysis reports help in identifying and controlling spending patterns. The introduction of a procurement software helps in creating a more regulated, centralized procurement procedure that eliminates ad hoc expenditure.

Through pre-approved requisition approval, spending is controlled and gets limited to preferred vendors.

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How to improve the procurement process?