Spend Analysis

Spend analysis is a key component of strategic supply management. This book provides in-depth guidance on what spend analysis really is, what it specifically involves, and how to use it to help your organization achieve its full potential.

Considering that the biggest machines that do the most work are made up of smaller machines and components, it becomes obvious that when a large machine breaks, it is normally due to small components acting antagonistically. Detailing a time-tested method for increasing productivity and lowering operational costs, Spend Analysis and Specification Development Using Failure Interpretation explains how to establish performance-based procurement specifications for the components, devices, and items that contribute the most to operational downtime and repair/replacement costs. The book emphasizes the critical need to perform both spend and failure analysis in order to develop a procurement document, which will ultimately reduce overall costs. Accompanied by downloadable resources with helpful material such as, specification checklists, case study worksheets, form letters, and return on investment (ROI) worksheets that you can customize to your needs, the text discusses how to: Identify the products that will cost the most if they fail Develop performance-based procurement specifications to reduce direct and indirect costs Examine cost analysis as it relates to operations, maintenance, and production Determine effective criteria based on properties, test results, and standards for each operation Written by an industry expert with decades of experience giving seminars, training customers and associates, and authoring numerous papers and articles, the text provides the real-world understanding of the influential components and materials’ physical properties needed to engage in effective failure and spend analysis. It addresses product submission and monitoring and includes helpful tools so you can immediately get started on conducting your own cost-saving analysis.

Purchased goods and services are an increasingly large proportion of public and private enterprise budgets. Historically, purchased goods and services have accounted for less than a third of an enterprise's budget, but today many enterprises spend more than two-thirds of their budgets on purchased goods and services. Similarly, the Air Force and the Department of Defense (DoD) spend nearly half their budgets for purchased goods and services and an additional sixth on weapon procurement (with only a third going to military and civilian personnel costs). (See pp. 1-6.) Because of the growing importance of purchasing, many enterprises have sought to develop supply strategies for their purchased goods and services. This monograph is intended as a resource for procurement personnel developing supply strategies for the Air Force or DoD. It does not analyze current military procurement practices but rather synthesizes academic, business, and professional literature on developing and applying supply strategies. Its core is a synthesis of nearly a dozen different processes found in the literature.

Managing corporate spend is far more complex than conducting RFPs. Learn how the most efficient and effective procurement departments operate, control costs, enforce compliance, and manage indirect spend. Managing Indirect Spend provides executives and procurement professionals with the knowledge and tools necessary to successfully reduce costs with a strong focus on the often-overlooked area of indirect spend. It also offers great value to those procurement and purchasing professionals aspiring to be leaders in the profession, regardless of the spend they manage. It includes an overview of the challenges faced when sourcing indirect spend categories, a detailed dive into the strategic sourcing process, tools that can help drive savings, technologies that drive efficiencies and compliance, and examples of success based on real-world experience. It is a how-to guide that clearly covers sourcing engagements of any complexity and provides the details needed to source effectively. The book is structured into sections covering the sourcing and procurement process, the tools and technologies, examples from the field, walkthroughs of specific sourcing engagements, guidance on building an effective sourcing team, and the information needed to become a best-in-class sourcing organization. Since the initial publication of this book, the procurement profession and the discipline of Strategic Sourcing have matured. Markets have changed, processes developed, trends have come and gone, and technology has experienced leaps and bounds, posing new and interesting challenges for procurement professionals. In addition to covering tried-and-true practices for strategic sourcing, this Second Edition discusses how strategic sourcing has evolved and provides an update on the techniques, tools, and resources available to purchasing groups. This book: Includes updated coverage of everything you need to know to source more effectively Covers the latest trends in procurement and sourcing, including technology, process improvements and organizational design Presents guidance for reducing costs through strategic sourcing, no matter what the economic climate or level of maturity of the existing procurement organization Shows how effectively managing indirect costs can provide a huge impact on bott m line growth Introduces Market Intelligence (MI), including techniques, tools, and resources available to procurement and supply chain management groups With tools, real-world examples, and practical strategies, Managing Indirect Spend provides insider guidance for big bottom-line growth through effective management of indirect costs.

Russell and Taylor's Operations and Supply Chain Management, 10th Edition is designed to teach students understand how to create value and competitive advantage along the supply chain in a rapidly changing global environment. Beyond providing a solid foundation, this course covers increasingly important OM topics of sustainability, corporate social responsibility, global trade policies, securing the supply chain, and risk and resilience. Most importantly, Operations Management, Tenth Edition makes the quantitative topics easy for students to understand and the mathematical applications less intimidating. Appropriate for all business students, this course takes a balanced approach to the foundational understanding of both qualitative and quantitative operations management processes.