A Spend Analysis initiative is often frustrating experience to start with because of the lack of good data. However one must realize that the availability of good data is not enough by itself. Often times a commodity council member might get overwhelmed by the volume of data that is available for analysis once a system goes live.

Commodity Council Members end up encountering data-overload issues:

• Data / Information overload due to granular classification - multiple Level 4 UNSPSC categories, now available
• Standard reports generated sometimes make it difficult to pin-point ‘actionable spending information’
• Significant efforts have to spent in ‘spend patterns identification’

Industry observers quote that almost 12-15 % of the sourcing cycle and 30-50% of the commodity manager’s time is spent in manual reviews to analyze spend data

Good data quality may offer exceptional visibility into an agency spends, but dedicated resources are needed to identify savings opportunities hidden within. This exercise of digging through item-level data, creating customized reports, for granular analysis of spend in different sub- categories, is often referred to as data mining.

Zycus offers deep domain experts, who can assist federal agency commodity councils in mining category based spend reports to assist in identification of opportunities. The professional services rendered by the Spend Mining team, can only assist and accelerate the process of discovery.

These services include, but are not limited to

• Price Analysis
  - Compare prices for like products within high spend categories
  - Benchmark price to external sources
• Supplier Rationalization
  - Consolidate fragmented volumes to reduce suppliers
  - Optimize supplier base
• Supplier Spend Balancing
  - Buy from the specialists

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