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Identify real savings, collaborate more effectively, improve contract compliance and evidence your success.

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Presentation on theme: "Identify real savings, collaborate more effectively, improve contract compliance and evidence your success."— Presentation transcript:

1 Identify real savings, collaborate more effectively, improve contract compliance and evidence your success.

2 To save, you have to know what you spend… Ready access to spend & supplier data that is accurate, comprehensive and fit-for-purpose is essential for the effective transformation of procurement. The Challenge All too often the only expenditure data available is missing vital attributes, is inappropriately classified for procurement purposes, is difficult to compare with others and is distributed across multiple systems. The Obstacle

3 Overcome with data deficit with Spikes Cavells unique & proprietary methodology for the quick and cost effective data extraction, standardization, classification and enrichment. Addressing the Obstacle The NIGP Observatory is a suite of analytical tools and value-added services that underpins the identification of real savings, more effective collaboration, better contract compliance, and recording achievement. The NIGP Observatory $254bn 71m Invoices 3.7m Creditors 1.1m Suppliers I can see clearly now the light is on…

4 Data is the foundation… DATADATA Payables Purchase Cards Purchase Orders Contracts Where does the data come from?

5 If you cant trust the data… DATA 1.Collect 2.Cleanse 3.Redact 4.Classify 5.Enrich 6.Collate How is the data made fit for purpose? DATADATA

6 DATA 1.Spend & Contract Analytics Analyze Aggregate Contract 2.Transparency spotlightonspend 3.Performance Measurement Measure Savings Report Achievements 4.Services Savings Opportunity Assessment Payment Recovery Tools to achieve… Now what can you do with the data?

7 Analyze - Generate a profile of your spend… ANALYZE has been designed to enable you to interrogate your enhanced spend data and generate the charts, graphs, tables and lists that deliver the answers you are likely to need to inform procurement strategy and to identify opportunities to deliver significant efficiencies.

8 Compare - Compare yourself with others… COMPARE facilitates the rapid production of comparative statistics and key indicators that help in understanding of position relative to others in the public and non-profit sector. COMPARE generates the answers to key questions that enable you to create a proper context for your procurement strategy and transformational goals.

9 Collaborate – Indentify common suppliers… COLLABORATE fundamentally alters the dynamics of effective collaboration by making it easy to analyse the spend of multiple public and non-profit sector bodies and identify common suppliers. Once your spend data has been enhanced and aggregated then the answers to questions that might uncover opportunities for collaboration are at your fingertips.

10 CONTRACT makes it easy to track and analyze spend with non-contracted suppliers. Updating your spend data over time, be that monthly, quarterly or bi-annually, and uploading summary contract information to the NIGP Observatory underpins the production of charts, graphs and tables that provide a invaluable insight into the nature and extent of maverick spend. Contract – Track & analyse maverick spend…

11 MEASURE delivers a tested methodology framework and the supporting online tools to make it easy to capture, collate and analyze the value, type and source of efficiencies delivered by the procurement function and provides you with a mechanism for monitoring your organizations performance relative to its savings and efficiency targets. Measure - Quantify delivered savings…

12 The Savings Opportunity Assessment: Benchmark data on expected savings based on a successful outcome per category, Experience of addressable spend (which ranges from 20% in areas like traffic management due to the high proportion of internal (staff) costs, long-term assets like parking lots etc through to 90%+ on areas such as telecommunications), Applied risk factor – the probability of unknown issues at the beginning of a project that could have an impact on delivered savings. These variables are applied to processed spend data to give us average % savings. Confidence on the range does not mean confidence of delivering the savings – its more related to the likelihood of whether any work has been done in that area before, and therefore the accuracy with which savings can be predicted. Min and max are calculated on the basis of a confidence factor: high confidence means a tight range, lower confidence means a wider range. Quantifying the savings opportunity…

13 Next steps…? For further information about implementing the NIGP Observatory in your own organization, please contact: Jonathan White Office: (571) 313 – 5257 ext 102 Cell: (571) 527 – 8310 E-mail:

14 Identify real savings, collaborate more effectively, improve contract compliance and evidence your success.

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