Aberdeen's Spend Analysis benchmark Study 2007

While enterprises are clearly able to recognize and communicate the benefits of utilizing spend analysis technology, they have not yet bridged the gap to action. Sixty percent of organizations currently rely on manual tools to collect and analyze spend data, resulting in limited spend visibility and the inability to improve cost savings.

Best-in-Class Performance
Aberdeen evaluated over 700 enterprises in July and August of 2007 and distinguished Best-in-Class enterprise by the percentage of enterprise spend under management. Best in Class enterprise in this study are notable for their superior performance and credit spend analysis solutions for delivering the following benefits:

• 12.7% savings due to sourcing efforts based on spend analysis data
• 9.1% reduction in manual correction of spend cleansed and classified
• 73% rate of compliance to contractual agreements

Competitive Maturity Assessment
Best-in-Class performers shared many common characteristics with respect to their spend analysis strategies. Best-in-Class companies are;

• 40% - 94% more likely to establish executive support for spend analysis initiatives
• 40% more likely to utilize spend analysis reports that provide details at the transaction level
• 30% more likely to have enterprise-level visibility into spend

Required Actions

• Establish executive support by demonstrating the ROI of a spend analysis investment.
• Know what you can and can't do - establish a baseline for spend analysis capability
• Move beyond sourcing cost savings - contract compliance will also positively effect the bottom line

Download full whitepaper :
Spend Analysis benchmark study-2007 (486 KB)