Spend AnalyticsAdvisory, India Analytics

2 | Spend Analytics

Spend Analytics – What it means for organizations

What: Process of aggregating, classifying and leveraging spend data to gain visibility on expenditure

How: Task of organizing a company’s spend in such a way that it can be understood, and to slice and dice it and uncover hidden saving opportunities

Why: Helps organizations reduce unnecessary expenditure and identify new saving opportunities

Spend Analytics is the process of collecting, cleansing, classifying and analyzing expenditure-related data to reduce procurement

What is Spend Analytics?

Data collection

Spend Analytics Life Cycle

Opportunity analysis

Data enrichment

CleanseSpend review

3Advisory India Analytics |

analysis of spend data is the starting point for organizations to gauge their spend, and

Need for Spend Analytics Spend Analytics helps organizations achieve the following:

• Gain enterprise-wide visibility of expenditure

• Identify and prioritize saving opportunities

• Analyze corporate spend

• including its contractual obligations

• Establish a spend baseline

•

• Take better and faster business decisions

Who is buying:

When:

What:

Where:

From whom:

At what price:

Spend Analytics

business units spending an organization’s funds.

It discovers when a purchase has taken place.

It categorizes what is bought with the funds.

unit incurring the expenditure.

entities from which this is bought.

It ascertains the price points at which the funds were spent.

4 | Spend Analytics

EY can help organizations identify, develop and implement robust

How EY can help

• Consolidation of expenditure to identify opportunities to leverage global scale for improved price-related negotiations

• Benchmarking of existing spend and alignment of or reduction in prices without an additional commitment on expenditure

• Implementation of process-improvement measures through enhanced internal controls, optimized costs and increased redundancy

• alternative models to manage these risks

• implement initiatives that are generated from the analysis

Organizations can improve their performance by analyzing their spend

Challenges organizations face while performing Spend Analytics

Challenges

People

• Pressure to place additional funds with management

• Labor-intensive process for managing and interpreting data

• Lack of resources to handle added level of complexity

Process

• Inability to identify and forecast saving opportunities

• Lack of mechanisms to transform insights into action

• Inadequate process to track success of cost-reduction initiatives

Technology

• Poor quality of spend-related data from multiple systems

• Lack of specialized analytical tools to integrate and analyze data

5Advisory India Analytics |

The EY advantage

Some key attributes of EY’s Analytics team:

Knowledge of sector:

• Sector-aligned competencies and experienced team

• business needs

Knowledge of domain:

• experience

•

consulting background

Knowledge of analytics:

• Experienced visualization resources, statisticians and data modelers

• Tried and tested repeatable components and repositories

IT enablement:

• Capability to deliver end-to-end, single window solutions and services across most technology platforms

Tools Description Dashboards

Travel & Expense Analytics suite

This is a plug-and-play tool used to analyze expense

scalable, repeatable and easy-to-customize analytical solution. The modularity of

remove custom analytics.

Spend Analytics accelerator

6 | Spend Analytics

Notes:

7Advisory India Analytics |

Ahmedabad2

nd

Near C.N. VidhyalayaAmbawadiAhmedabad - 380 015Tel: + 91 79 6608 3800Fax: + 91 79 6608 3900

Bengaluru12

th & 13

th

“UB City”, Canberra Block

Bengaluru - 560 001Tel: + 91 80 4027 5000 + 91 80 6727 5000 Fax: + 91 80 2210 6000 (12

th

Fax: + 91 80 2224 0695 (13th

1st Floor, Prestige Emerald

Bengaluru - 560 001Tel: + 91 80 6727 5000 Fax: + 91 80 2222 4112

Chandigarh1

st Floor, SCO: 166-167

Chandigarh - 160 009 Tel: + 91 172 671 7800Fax: + 91 172 671 7888

ChennaiTidel Park, 6

th & 7

th Floor

Chennai - 600113Tel: + 91 44 6654 8100 Fax: + 91 44 2254 0120

Hyderabad

Hyderabad - 500081Tel: + 91 40 6736 2000Fax: + 91 40 6736 2200

Kochi9

th Floor, ABAD Nucleus

Kochi - 682304Tel: + 91 484 304 4000 Fax: + 91 484 270 5393

Kolkata22 Camac Street3

rd

Kolkata - 700 016Tel: + 91 33 6615 3400Fax: + 91 33 2281 7750

Mumbai14

th

Tel: + 91 022 6192 0000Fax: + 91 022 6192 1000

5th

Floor, Block B-2Nirlon Knowledge ParkOff. Western Express Highway

Tel: + 91 22 6192 0000Fax: + 91 22 6192 3000

NCRGolf View Corporate Tower BNear DLF Golf CourseSector 42Gurgaon - 122002Tel: + 91 124 464 4000Fax: + 91 124 464 4050

6th

New Delhi - 110 001Tel: + 91 11 4363 3000 Fax: + 91 11 4363 3200

4th

& 5th

Floor, Plot No 2B, Tower 2, Sector 126, NOIDA 201 304 Gautam Budh Nagar, U.P. IndiaTel: + 91 120 671 7000 Fax: + 91 120 671 7171

PuneC-401, 4

th

Panchshil Tech ParkYerwada

Pune - 411 006Tel: + 91 20 6603 6000Fax: + 91 20 6601 5900

For more information about how our team can help you and your business, please contact:

+91 44 6654 6835

+91 124 464 4078

+91 22 619 20256

Upendra Sai

+91 44 6654 8642

+91 44 6654 8643

Aravind Srinivas

+91 80 6727 5157

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/in.

Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata - 700016

© 2014 Ernst & Young LLP. Published in India. All Rights Reserved.

EYIN1411-119 ED None

This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

EY refers to the global organization, and/or one or more of the independent member firms of Ernst & Young Global Limited

Ernst & Young LLPEY | Assurance | Tax | Transactions | Advisory