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Regardless of the market situation (low or high inflation), it’s critical to have a very tight grip on the spend and understand all the detailed movements of your costs – either upwards or downwards. Our app allows you to track both the price increases and cost savings separately and additionally also show any avoided price increases as cost avoidances (this way Procurement department can also show its valuable contribution to the bottom line through avoided price increases).
In order to control your spend and deliver either the savings targets or in some situations lower price increases, it’s critical to have:
- Good understanding of your spend (spend analytics helps here)
- Tight Plans for execution of sourcing events (Savings, avoided price increases and others)
- Excellent tracking of how plans are implemented and what these have actually delivered in reality (savings, increases or avoidances)
Without having all of the above in place, in our experience this leads to suboptimal financial results. Our App helps you achieve all of the above so you can really deliver the Procurement targets as planned.
Our tool at the moment does not require any integration with your ERP – the spend data simply gets imported (typically monthly) via simple CSV template. This setup allows us to set up new clients in a matter of days instead of up to a few months needed in case we were doing ERP integrations. That said we are already working on the next version where we will also have an option of an API that would be used to extract info required (spend data) out of different ERP systems.
The import of data is done via a simple csv template (either invoices or purchase orders) with some key fields such as Unique transaction ID, Date, Material nr. (SKU), Quantity, Price per unit. The whole upload process takes less than a minute at the time.
The monthly costs of the App are determined based on the number of users for each Customer and there are many packages available that would suits your specific needs. All of these are discussed during a free demo call.
Yes. It can plan and track separately Gross savings, gross price increases and also then show them all consolidated as Net savings. The same approach is then used for Cost avoidances and also Total Contribution (Savings + Avoidances).