Spend Analysis
Spend Analysis
Sylvester Wright
BUS307
Informal Logic
Professor Donna Rothstien
August 8, 2011
Spend analysis is the application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement (Bozarth & Handfield, 2013). It is one of the most vital parts when it comes to strategic planning. It is the components of the overall spend management and process that includes the analysis, award, and monitoring of corporate spending. Furthermore, it is the first and last step of the strategic sourcing process that drives total value. Data analysis is the process of systematically applying statistical and/or logical techniques to describe and illustrate, condense and recap, and evaluate data (Data Anlysis). This type of analysis is just one of the several steps that must be completed when conducting a research experiment. It is part of an overall spend management and visibility process that includes the analysis, award, and monitoring of corporate spend. Additionally, it is the first and last step of the strategic sourcing process that drives total value.
Data analysis skills and thinking are an important part when creating a spend analysis. In fact they both come hand in hand because data is ineffective if you don’t have the thinking power to analyze it. When trying to prepare a spend analysis the part that usually goes unnoticed is the preparation and data management that goes into creating the completed analysis.
Spend analysis software is a valuable tool for companies. There are many positives when using software such as giving the company a tool to help monitor spending at the supplier level and ensures compliance within the companies guidelines.
Data analysis is important to help with a company’s growth and improvement. Six Sigma methodology is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations
Sylvester Wright
BUS307
Informal Logic
Professor Donna Rothstien
August 8, 2011
Spend analysis is the application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement (Bozarth & Handfield, 2013). It is one of the most vital parts when it comes to strategic planning. It is the components of the overall spend management and process that includes the analysis, award, and monitoring of corporate spending. Furthermore, it is the first and last step of the strategic sourcing process that drives total value. Data analysis is the process of systematically applying statistical and/or logical techniques to describe and illustrate, condense and recap, and evaluate data (Data Anlysis). This type of analysis is just one of the several steps that must be completed when conducting a research experiment. It is part of an overall spend management and visibility process that includes the analysis, award, and monitoring of corporate spend. Additionally, it is the first and last step of the strategic sourcing process that drives total value.
Data analysis skills and thinking are an important part when creating a spend analysis. In fact they both come hand in hand because data is ineffective if you don’t have the thinking power to analyze it. When trying to prepare a spend analysis the part that usually goes unnoticed is the preparation and data management that goes into creating the completed analysis.
Spend analysis software is a valuable tool for companies. There are many positives when using software such as giving the company a tool to help monitor spending at the supplier level and ensures compliance within the companies guidelines.
Data analysis is important to help with a company’s growth and improvement. Six Sigma methodology is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations
References: Bozarth, C. C., & Handfield, R. B. (2013). Introduction to Operations and Supply Chain Management (Third ed.). Saddle River, New Jersey: Prentice Hall. Data Anlysis. (n.d.). Retrieved from Responsible Conduct in Data Management: http://ori.hhs.gov/education/products/n_illinois_u/datamanagement/datopic.html What Is Six Sigma? . (n.d.). Retrieved from Six Sima: http://www.isixsigma.com/new-to-six-sigma/getting-started/what-six-sigma/