Real spend management begins with insightful spend analysis
The SAP Ariba spend analysis solution gathers your spend data from wherever it lives, classifies it according to company and industry standards, and then enriches it with Dun & Bradstreet market intelligence. The result is an objective, insightful analysis of your organization's spending habits and the opportunities you have to save money and improve supplier relationships.
Get the spend visibility you need to make better, faster, and more confident buying decisions – and negotiate with more clout. With your analysis in hand, you’ll know:
How much you’re really spending, and with whom, especially among families of suppliers
If you're getting what was promised during contract negotiations, including agreed-upon prices and savings
Which suppliers can help you achieve your diversity and sustainability goals
SAP Ariba Spend Analysis can also help you compare your spending to that of peers in your industry.
Spend Analysis Software: Product Features
Enriched supplier data
With a solution tightly woven with Dun and Bradstreet’s enriched business information, gain deeper insight into your supply base, find sourcing opportunities within existing relationships, bring more purchasing clout to negotiations, identify risks in your supply base, and much more.
Access up-to-date spend records and reports that help you discover and control maverick, off-contract, and non-PO-based spending as well as fraud and other non-compliant activity.
Advanced machine learning
SAP Ariba’s next-generation enrichment service employs advanced machine learning technologies that deliver fast and accurate supplier enrichment and commodity classification of massive volumes of data, rapid project deployments, and ongoing refreshes along with improved quality assurance coverage.
Better user adoption
Encourage user adoption with customizable role-based dashboards, using a drag-and-drop interface that makes it easy to view, analyze, and report spending, then identify and prioritize savings opportunities.
During set-up, your project manager helps with taxonomies and savings strategies. Then the SAP Ariba Best Practice Center can help with building sourcing pipeline, advanced reporting, and enhancing data accuracy. Going forward, count on ongoing support for the duration of your subscription.
Fast reporting and analytics
The power of SAP HANA’s in-memory computing makes your job faster and easier with up to 20 percent faster data loading, 80 times faster reporting, and no timeouts or barriers on data size or complexity.
Advanced reporting and analytics
Include with your solution subscription an add-on that delivers quick time to value with an interactive reporting user interface, prebuilt data models, enhanced visualization, and stories from SAP Analytics Cloud.
Related Spend Analysis Resources
Frequently Asked Questions
What is spend analysis?
Spend analysis is the business practice of reviewing enterprise-wide spend data so decision-makers can understand spend by supplier, buyer, category, and part. This insight drives savings and delivers strategic value. Spend analysis software classifies and enriches a company’s spend data with market intelligence and provides advanced analytics, helping the business manage supply chain activities efficiently.
Why is spend analysis important?
Spend analysis is important because it provides the foundation for procurement organizations to make informed sourcing decisions. Spend analysis software provides insights that help companies understand how much they spend, which commodities they buy, who their key suppliers are, and more. With these insights, procurement teams can identify savings opportunities, improve purchasing leverage, increase spend under management, drive sustainability and diversity initiatives, and mitigate risk.
How to conduct a spend analysis?
A spend analysis is conducted by following a series of processes, including:
- Data collection occurs when companies acquire spend data from multiple sources for subsequent classification and normalization. A comprehensive data collection and validation process aggregates spend data completely and accurately from multiple disparate source systems.
- Data classification offers an in-depth, hierarchical view of all commodities spending by classifying spend data using a blend of industry standards and custom taxonomies. Using machine learning-based algorithms, supplier intelligence and custom mapping, and rules engines, it provides commodity classification that helps companies discover category insights hidden within unstructured spend data.
- Supplier enrichment adds meaningful information to supplier data. By enriching supplier data with extensive information on parentage, diversity, financials, risk, and sustainability, companies can improve purchasing leverage and decision-making.
- Data analysis helps companies slice and dice raw and enriched data to realize insights. They can identify rapid sourcing opportunities and perform in-depth analyses to discover potential ongoing savings.
What is Ariba Spend Analysis?
Ariba Spend Analysis is an SAP cloud-based, software solution that helps organizations make trusted, confident spend decisions by delivering 360-degree visibility into enterprise-wide procurement data. More than just data aggregation and visualization, this spend analysis solution enables accurate spend classification, supplier information enrichment using an exceptionally large supplier database, and market data integration.
Using SAP Ariba Spend Analysis, companies can discover how much they spend, which commodities they buy, which suppliers they buy from, and more. These insights help procurement teams identify savings opportunities, improve purchasing leverage, increase spend under management, drive sustainability and diversity initiatives, and mitigate risk.
How is spend analysis used in sourcing and procurement?
Spend analysis is used in sourcing and procurement to deliver cost savings – a critical role offering the most significant benefit for most enterprises. By allowing purchasing executives visibility into what their company buys, from whom, and at what cost, spend analysis software enhances the control and knowledge needed for informed sourcing decisions.
The resulting spend intelligence helps companies:
Improve and enhance relationships with internal stakeholders, partners, suppliers, and customers
Consolidate and optimize spend, invoices, categories, and suppliers
Develop new strategies for managing working capital
Mitigate risk and drive benchmarking initiatives
When aligned with a company’s objectives, spend analysis provides clarity and visibility into the spend and sourcing pipeline, which can create competitive advantage.