The goals of each spend analytics project should be encapsulated by very specific metrics and measurable achievements, to guide the efforts and measure success. The CPO will definitely want to be able to quantify the accomplishments.

The types of data required will almost always include supplier, commodity and spend information. But which information and which level of detail are needed? Do you need P.O. information? Down to the line item? Do you need performance information from execution systems, such as on-time delivery metrics. Do you need external data feeds to enhance internal information you have about the supplier, or to provide commodity market price information? Perhaps you need benchmarking data on what your peers are spending on specific commodities or services as a percent of revenue, or some of their procurement metrics. These requirements should be understood; it all comes back to the clearly stated objectives of the project.

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Keywords: Sourcing & Procurement Solutions, Supplier Relationship Management, SC Finance & Revenue Mgmt., Business Intelligence & Analytics, Technology, Business Strategy Alignment, Supply Chain Analysis & Consulting, Global Supply Chain Management, ChainLink Research, components of spend analysis, data needed to analyze spending