Marketing & Admin Spend Analytic

The next major category of spend identified is the Marketing and Administration spend. I would like to reiterate that the Total spend analytic tool has limited value here as it does not enable the level of drill down that we would be interested in disabling us from strategizing on the supplier networks. As I have mentioned previously this tool was made possible because we have a centralized purchasing system. It can also be made possible if data of different spends is available in the organization. Of course that would require us to modify and suit the tool based upon our requirements.
In order to do this we took a dump of all the Purchase Orders that had been issued in the previous year. Lack of an IT system and manual filing of the PO’s made the job extremely tough. We had to hire data operators to get the 1500 odd PO’s punched in the system. To get over this problem in the coming year we developed an Online requisition system, more on the same in the online requisition system. Presently we will be discussing about this tool.
This file is again made up of three sheets.

• Data Sheet
• Analytic Sheet
• Summary Sheet

The data sheet contains all the POs issued in the preceding financial year, classified by the date, Item description, Item Category, Department, Division, Supplier, Spend. The data sheet is only a dump of the existing purchase orders.

Depending on the combination of requirements chosen the tool would throw up the spend on each suppliers and each department. The three tools Total Spend Analytic, Material Spend Analytic and Marketing & Admin Spend Analytic would help us in our further endeavors to identify areas to focus & cut costs.