{"id":8698,"date":"2019-05-13T00:53:06","date_gmt":"2019-05-12T22:53:06","guid":{"rendered":"https:\/\/sourcing-force.com\/?p=8698"},"modified":"2022-09-24T14:49:48","modified_gmt":"2022-09-24T12:49:48","slug":"the-number-1-spend-analysis-question-to-ask-when-evaluating-solutions","status":"publish","type":"post","link":"https:\/\/sourcing-force.com\/en\/the-number-1-spend-analysis-question-to-ask-when-evaluating-solutions\/","title":{"rendered":"The Number 1 Spend Analysis Question To Ask When Evaluating Solutions"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-8699\" src=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-05-at-6.55.31-PM-1024x392.png\" alt=\"\" width=\"1024\" height=\"392\" srcset=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-05-at-6.55.31-PM-1024x392.png 1024w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-05-at-6.55.31-PM-300x115.png 300w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-05-at-6.55.31-PM-768x294.png 768w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-05-at-6.55.31-PM-1080x413.png 1080w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-05-05-at-6.55.31-PM.png 1306w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><span style=\"font-size: 18pt;\">There are so many reasons that spend analysis projects fail that it\u2019s hard to wrap every potential issue up into one question that will ensure the right decision.<\/span><\/p>\n<p><span style=\"font-size: 18pt;\">Most companies who have attempted spend analysis and had a less than optimal outcome will cite one of the following:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">The system or approach didn\u2019t meet my business needs. Examples of this problem are that the solution they chose (often times a one-size-fits all approach intended to meet every customer\u2019s requirements) couldn\u2019t be altered to specifically meet any individual business\u2019 requirements.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Data Accuracy. Or more specifically lack thereof, creates lack of trust in the data and ultimately lack of end user adoption.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Too time consuming. With many of the approaches and solutions being offered today, it\u2019s simply too time consuming to get the spend analysis insights required in order to make good decisions and impact behaviors. And by the time those insights are available, the data is stale, making it virtually impossible to proactively affect change and impact cost.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">\u00a0Too daunting. This one goes hand-in-hand with too time consuming. The problem many companies face is that their data is so disparate and non-uniform (as is the behavior of their employees), that pulling together all their data requires significant filtering, aggregating, and normalizing of global data sets that simply do not come together easily or quickly. And because most vendors (not Sourcing Force by the way) require a clean, normalized, uniform data extract to be provided in order to process spend data, many companies find it difficult to support this effort with the limited resources they have in this economy.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Difficult to use. Some reporting &amp; analysis tools have come a long way towards usability. But unfortunately, most have not. This has created an environment of bottlenecks across the enterprise, because the resources trained on how to use these tools (typically senior analysts) are not the resources who are tasked with managing the spend categories and assigned the cost reduction goals. That\u2019s a problem, right? It typically means most category managers are spending a lot of time using Excel to manage spend, instead of having direct access to the constantly changing information they need to make decisions and affect change.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 14pt;\">These are just a few reasons spend analysis projects fail. So how can a company seeking a successful spend analysis outcome, get to the bottom of whether or not the vendor they are considering will bring them negative results?<\/span><\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<p><span style=\"font-size: 18pt;\"><strong><em>The number one question to ask:<\/em><\/strong><\/span><\/p>\n<p><span style=\"font-size: 18pt;\"><strong><em>\u00a0\u00a0\u00a0\u00a0\u201cDid your spend analysis vendor deliver to your expectations?\u201d<\/em><\/strong><\/span><\/p>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 14pt;\">(Followed shortly by \u201cWhy?\u201d \u2026..regardless of whether their project was successful or not, you\u2019ll find out which vendors are good, and which are bad.)<\/span><a href=\"https:\/\/sourcing-force.com\/en\/the-ultimate-guide-to-spend-analysis-white-paper\/\"><\/a><\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-6806\" src=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/02\/illu3-1.jpg\" alt=\"\" width=\"450\" height=\"450\" srcset=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/02\/illu3-1.jpg 450w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/02\/illu3-1-150x150.jpg 150w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/02\/illu3-1-300x300.jpg 300w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><span style=\"font-size: 14pt;\">As you\u2019ve probably guessed already, this is not a question to ask the vendor. <\/span><span style=\"font-size: 16px;\">\u00a0<\/span><\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><span style=\"font-size: 14pt;\">But what you may not have considered is that you probably shouldn\u2019t even ask a vendor\u2019s reference customer this question. Any vendor can likely produce at least one customer who will say nice things about them &#8211; maybe even two or three if they have a large enough customer base. <\/span><\/p>\n<p><span style=\"font-size: 14pt;\">But if you really want to know how well a vendor can really support you, ask your peers.\u00a0<strong>Ask companies who your potential vendor\u00a0<em>hasn\u2019t<\/em>\u00a0provided as a reference.<\/strong>\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 14pt;\">Seek out global peers (both inside and outside of your industry) who have executed spend analysis, and ask them what worked and what didn\u2019t. And it\u2019s important to survey at each level of the organization.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 14pt;\"> Ask everyone from top level management and executives, down through actual end users who used the solution daily, as this will ensure you\u2019re not getting an answer that does not represent the entire organization\u2019s perspective, is guided by internal politics, or swayed by vendor friendships, etc.<\/span><\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<p><span style=\"font-size: 14pt;\">There\u2019s a lot of time, money and just as importantly your professional reputation on the line when making a decision that can have such an immense positive (or negative) impact to your company\u2019s business. Don\u2019t simply take the vendor\u2019s word!<\/span><\/p>\n<\/blockquote>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.17.6&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><a href=\"https:\/\/sourcing-force.com\/en\/the-ultimate-guide-to-spend-analysis-white-paper\/\"><img decoding=\"async\" class=\"aligncenter size-large wp-image-8681\" src=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/The-ultimate-guide-to-spend-Analysis-1024x405.png\" alt=\"\" width=\"1024\" height=\"405\" srcset=\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/The-ultimate-guide-to-spend-Analysis-1024x405.png 1024w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/The-ultimate-guide-to-spend-Analysis-300x119.png 300w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/The-ultimate-guide-to-spend-Analysis-768x303.png 768w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/The-ultimate-guide-to-spend-Analysis-1080x427.png 1080w, https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/The-ultimate-guide-to-spend-Analysis.png 1815w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are so many reasons that spend analysis projects fail that it\u2019s hard to wrap every potential issue up into one question that will ensure the right decision. Most companies who have attempted spend analysis and had a less than optimal outcome will cite one of the following: &nbsp; The system or approach didn\u2019t meet [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8699,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-8698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spend-analytics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Number 1 Spend Analysis Question To Ask When Evaluating Solutions - Sourcing Force<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sourcing-force.com\/en\/the-number-1-spend-analysis-question-to-ask-when-evaluating-solutions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Number 1 Spend Analysis Question To Ask When Evaluating Solutions - Sourcing Force\" \/>\n<meta property=\"og:description\" content=\"There are so many reasons that spend analysis projects fail that it\u2019s hard to wrap every potential issue up into one question that will ensure the right decision. 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