Manage all your vendor information in one place
Every organisation wants it: insight into procurement expenses and, where possible, to cut costs. That’s why most organisations have solutions or software to give them an overview of procurement spending (e.g. in an ERP system of Excel spreadsheet). However, few organisations analyse their data in order to subsequently optimise procurement performance or make savings.
VendorLink’s Spend Analysis offers organisations the possibility to do more with the spend data. In this blog you can read what spend analysis is, what objectives a spend analysis might have, what data you analyse, and what the results of a spend analysis are, and we give a number of practical examples.
Contracts with suppliers: every organisation has them, but are they also managed? We see organisations dealing with such questions as:
* With which suppliers do we have contracts in this procurement category?
* What have we agreed with this supplier?
* Where can I find our supplier contracts?
* Where is the contract that requires authorisation?
* Are we benefiting from contractual agreements, or is there a lot of non-contract purchasing?
* When does this contract expire?
* Who is responsible for contract management?
In order to better monitor supplier compliance with contractual agreements, procurement departments use vendor rating. Vendor rating is the process whereby organisations evaluate their suppliers’ performance, such as reliability of delivery, price reliability, and communication. Based on the vendor rating results, supplier performance can be adjusted in good time and you can, for example, decide to enter into a contract with a different supplier.
When you start with vendor rating, you are going to evaluate suppliers in terms of various indicators. For example, a supplier can be evaluated according to quantitative and qualitative indicators. Information about price agreements, contracts, etc. can be retrieved from ERP systems, the spend analysis or contract management software. This information tells you something about how well the supplier is fulfilling his agreements.