Qlik Procurement Analytics
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This document discusses how procurement analytics can help identify cost savings opportunities through improved spend analysis. It notes that standardizing systems could provide better visibility into supplier performance and negotiations. Expanding current supplier performance analysis to measure more vendors would allow for cost-effective negotiations. The focus is on using data and analytics to gain insights into procurement spend across areas like travel, communications, and vehicles to save money.
Qlik Procurement Analytics
- 1. Procurement Analytics Data-Driven Purchasing Ferran Garcia 2017
- 2. Related to Employee Expenses we can save money in 4 areas: Travel, Tickets, Communications and Vehicles. Currently we have a supplier performance analysis app but we can only measure a few suppliers. We need to standardize our systems to improve the visibility. If we were able to analyze more suppliers we would be able to have better negotiations with them that would lead to cost savings.
- 3. Focus on sourcing typically yields significant profits: a euro in increased sales is ten cents in profit while a euro saved in costs is a euro increase in profit. Source: Spend Management: Key Elements for Realising Cost Savings in Procurement. BearingPoint
- 4. Top Preasures Drving Focus on Spend Analysis 47% 29% 27% 23% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Identify savings opportunities Prioritize spend categories Increase spend under management Improve negotiation leverage Source: Aberdeen group.
- 5. 5 Uses cases in Procurement PROCUREMENT KEY PRIORITY AREAS Employee Expense Procurement Performance Supplier Performance Spend Management Employee Spent Procurement Cycle Time Supplier price performance, SLA Compilance Spent Vs Budget Approval cycle times Number of Suppliers Delivery performance Spend by product, vendor, cost center, … Cost Saving per Employee % Managed Spent % of suppliers that are responsible for 80% of spend Alerts Source: Qlik Value Engineering
- 6. 6 Analytic Landscape in Procurement Diversidad de Datos Diversidad de Usuarios Datos Estructurados Datos No Estructurados Datos en la Nube IoT Analista de DatosDevelopers Usuarios Plataforma Analítica
- 7. 7 Top Challenges for Spend Analysis 42% 36% 31% 28% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Poor data quality Too many data sources Lack of standarized processes Insufficient system automation
- 8. 8 Moving from Data to Insight Data Blending Data Discovery Goberned Self-Service Insight Distribution DATA INSIGHT
- 9. What is Embedded Analytics? A scenario in which analytical capabilities (i.e. visualization, data mgmt.) are built or embedded within other business software. Source: ‘The User’s Guide to Embedded Analytics’. The Aberdeen Group. A scenario in which analytical capabilities (i.e. visualization, data mgmt.) are built or embedded within other business software. Source: ‘The User’s Guide to Embedded Analytics’. The Aberdeen Group.
- 10. Demo
- 11. 11 €42 million in procurement savings over 2 years • National Health Service (NHS) ─ Publicly funded healthcare system in England serving more than 60 million people. • Challenges ─ Achieve standard approach to consolidate data from multiple financial and purchasing systems throughout the Trust sponsor bodies. ─ Identify areas across trust network to reduce contract spend as part of supply chain excellence program within the CPH. • Benefits ─ Garnered €42 million in procurement cost savings over 2 years for North West Collaborative Hub that manages €1.5 billion in spend. ─ Improved Hub performance by delivering insights into data. ─ Saved hours of management time in reporting and analysis
- 12. 12 Embedded Analytics in the Suppliers Portal • KPI ─ Product: Quality, Customer Satisfaction. ─ Supply Chain, Customer Facing: Reliability, Abalilability and Responsiveness. ─ Supply Chain, Internal: Cost. • Benefits ─ Increase customer satisfaction by. • Improve products • Improve SupplyChain ─ Decrease cost
- 13. 13 Conclusions Analytic Platform Strategic Objectives Data Blending Data Discovery Goberned Self- Service Insight Distribution Employee Expense Procurement Performance Supplier Performance Spend Management • Multiple data sources. • Fast dev. • Free Data exploration. • Asociative log. • Easy viz creation. • Goberned. • UIX Tranparent. • Use cases.
- 14. Procurement Analytics Data-Driven Purchasing Ferran Garcia 2017