Leaders of spend analysis
Five companies climbed to the top of the mountain in 2005 for their leading-edge practices in spend analysis
By Staff -- Purchasing, 3/17/2005 2:00:00 AM
Sometimes it's harder the second time that a group of winners is selected because they are measured not just by their own merits—but against the accomplishments of the previous winners. But even with a higher mountain to climb, PURCHASING's Leaders of Spend Analysis for 2005 stand out—and stand above—their peers for their accomplishments.
Like last year's inaugural winners, they go far beyond just capturing spend data and making periodic backward-looking spend data reports available to commodity strategists or sourcing teams.
This elite group of Spend Analysis Leaders have complete 360-degree views of their spend data, capture and analyze nearly 100% of their spend, and use spend analysis to drive profits to the bottom line and create a competitive advantage in the marketplace.
They're also characterized by innovations that separate them from the rest.
Teradyne, for example, extends its spend analysis to its electronic manufacturing services partners. Waste Management has used its spend analysis data not just to cut costs, but to select suppliers and measure their performance. Agere has developed a commodity cost index to evaluate pricing and also looks deeply into the underlying factors that can impact the prices it pays for the raw materials and commodities it needs. New Flyer has used spend analysis to redesign its procurement organization into more of a standalone strategic function with a chief financial officer of its own. Kennametal has a forward and backward look that has enabled them to buy more strategically and negotiate better.
The approaches may be different, but the results are the same. Greater control of spending that has led to significant savings, greater efficiency, more effectiveness and an impact on bottom line profits.
We're proud to honor these winners. But we're just as proud to present to you five compelling articles with ideas and concepts that you can incorporate into your organization and to give you insight in the processes and thinking that each of these companies used to achieve spend analysis success. You'll also learn how each of these companies met—and overcame—the challenges and obstacles as they climbed to the top of the mountain to become a Leader of Spend Analysis.
The winners, profiled in the pages that follow, are:
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New Flyer Industries
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Waste Management
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Teradyne Semiconductor Test Division
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Agere Systems
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Kennametal
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