Learning and Skills Network (LSN)

Spend Analysis

Overview

Spend Analysis is a valuable process that will highlight ways you can save money in procurement. Our specialists can analyse your expenditure data, produce recommendations and help you implement an action plan.

Key benefits

• Eliminate costly and needless invoice processing
• Identify improvements to negotiating framework contracts
• Partner with local organisations to achieve cost savings

How does it work?

Step 1: Spend analysis
We partner with Exor Management Services and Experian to bring you this empowering process. We’ll analyse your expenditure and give you a full analysis of your spending.

Step 2: Action planning
Our specialist will identify money-saving opportunities for you. This includes highlighting who is overcharging and how you can save by moving from multiple to single supplier framework agreements. We then work with you to develop an action plan targeting priority cost savings.

Step 3: Consulting support and implementation
We can also:

• Coach your key staff members
• Guide you through appropriate framework agreements
• Identify local opportunities to establish framework agreements with other organisations
• Train you in supplier negotiation
• Advise you on using tenders to select suppliers
• Explain the merits of procuring as a consortium.

Procurement savings

Would you like to save money by reviewing and rationalising your procurement processes? The National Audit Office estimates that an average college could save £200,000 yearly (or 5% of expenditure) by amending procurement processes.

Negotiation and collaboration

Would you like us to identify which of your suppliers need you most? With Spend Analysis we’ll specify what you spend with each supplier. Using this information you can negotiate better agreements with key suppliers.

Do you co-operate with other organisations on procurement? If others are using Spend Analysis, you could collaborate on purchasing, share best practice and benchmark your practices.

Based on a college with a £14,251,516 supplier spend

• Provides a breakdown by different supplier categories
• Primary focus on suppliers
• Indicates the spend, number of invoices received, number of organisations and average invoice value.