Analytics
Spend Performance
The Spend Performance tab evaluates how efficiently spend is being managed across the organization. It enables you to identify specific savings opportunities and monitor performance improvements or declines over time.
🎯 Purpose
This dashboard shifts the focus from "what" was spent to "how" it was managed, answering:
- Efficiency: How effectively is the organization managing its capital?
- Opportunity: Where are the untapped areas for cost savings?
- Momentum: How has performance shifted compared to historical benchmarks?
🛠️ What You Can Do
| Action | Description |
|---|---|
| Review efficiency trends | Track spending efficiency and cost-effectiveness over time. |
| Identify savings opportunities | Discover specific areas where costs can be reduced or consolidated. |
| Track improvements | Monitor performance changes and policy adherence across periods. |
| Compare baselines | Measure current spending performance against historical norms. |
| Prioritize actions | Focus resources on high-impact optimization areas with the most potential. |
📊 Key Metrics
The Spend Performance tab typically displays the following indicators of health:
- Efficiency Ratios: Quantitative metrics showing the cost-effectiveness of procurement activities.
- Trend Indicators: Period-over-period (PoP) performance changes to highlight acceleration or decline.
- Savings Potential: Calculations of identified opportunities for cost reduction or avoidance.
- Performance Benchmarks: Comparisons against internal targets, budgets, or historical data.
🔄 Recommended Workflow
To maximize savings impact, follow this analytical path:
- Assess the Baseline: Review the overall efficiency summary to get a current state of performance.
- Identify Decline: Isolate categories or vendors where performance metrics are trending downward.
- Quantify Potential: Drill into the specific data segments flagged with high savings potential.
- Isolate Variables: Use filters (Date, Category, Region) to focus on actionable segments for immediate intervention.
- Strategic Export: Export these insights to use as the foundation for strategic planning or supplier negotiation sessions.
💡 Tips for Success
- Early Detection: Monitor this tab regularly to catch declining performance before it impacts quarterly budgets.
- Comparative Analysis: Use date range filters to compare current performance against the same period last year (YoY).
- Supplier Reviews: Combine these performance metrics with vendor analysis for a data-driven approach to supplier QBRs (Quarterly Business Reviews).
Next Step: Having identified a savings opportunity? Move to the Vendor Overview to analyze the specific suppliers involved.