@UK plc's insight into Spend Analysis

@UK plc eProcurement and Spend Analysis specialists launch their latest product SpendInsight^TM. This new Spend Analysis system is a cost effective way to fully understand total purchasing spend over a specific time with the enhanced option of monthly reviews.

Over recent years there have been many claims on the wonders of spend analysis and potential savings to be had. However, the one part missing in the jigsaw has always been the ability to change processes and deliver long term sustainable benefits.

Chairman of @UK plc Ronald Duncan is passionate about getting this solution right for the customer 'Detailed spend analysis has always given good benefits, but the cost and time often put off customers, who often opted instead for simple high level projects.  Now we have an intelligent automated solution that makes line item detailed spend analysis quick and straightforward for customers.  This allows our customers to gain significant benefits, and our purchase to pay marketplace allows them to quickly realise these benefits.'

With this insight @UK embarked on a three year Knowledge Transfer Partnership (KTP) working with University of Reading and Goldsmiths College London to develop an advanced system. This partnership has translated academic research into an industry solution. The next step was to work closely with a launch customer to get the system fit for purpose. The NHS London Procurement Programme (LPP) joined the team and helped develop the system for their 73 London Trusts. The objective was clear and simple, 'To deliver an end to end solution which could take raw data, enrich it, translate it into meaningful information, track it and repeat the process regularly. All to be done much quicker and more cost effectively than before'

To ensure @UK plc could best meet these requirements they acquired a specialist coding company with over 30 years practical experience and understanding of the coding practice, since they knew that effective spend analysis required item level classification from their work on purchasing benchmarking systems. This gave them a core database of product information which enabled the enrichment of data and the ability to get to item not just category level descriptions. Putting the academic specialists together with @UK plc's expertise has meant delivery of what they believe to be a leading edge Spend Analysis solution.

In simple terms SpendInsight^TM gives the ability to identify seven key areas of savings opportunities.

1. The same product bought from the same supplier at various prices (price variance).
2. The same product from the same supplier from differing parts of the company (price bench marking).
3. The same product bought from differing suppliers at various prices (price comparison).
4. Differing products with the same functional role (product consolidation).
5. Same product bought frequently in small amounts (order consolidation).
6. Products bought off contract when one exists (contract adherence).
7. Framework/Hub contracts available but not used (contract opportunities).

Once the analysis is complete the results are presented back through a web front end which can be tailored to the focus on the customer's exact requirements. This gives the ability to clearly see each opportunity and its' relative size and value to the organisation. The process can then be monitored and easily repeated every month to measure changes or view and track trends.

SpendInsight^TM is one of only seven other providers selected under the OGC (Office Government & Commerce) Buying Solutions Framework to deliver Spend Analysis solutions to public sector organisations.

How it works. (High level overview)

The System takes raw data (inputs) from various sources, accounts payable, purchase order, supplier files and contact information.
They are then processed through the technical system (Axiascope) which cleanses and classifies the data. Once this is completed the data is enriched and the result is collated under the seven guiding principles. The final stage (output) presents this information in a choice of format which presents clearly trends and opportunities.

For more a more detailed overview you can download the @UK PLC, Insight into Spend Analysis brochure or visit the new SpendInsight^TM  website.