Part 2: Spend understanding Request Info In this blog series, we discuss why digitalization and analytics for M&A are key to uncovering best practices and how to use data-driven decision-making to find these best practices, maximizing cost savings within a newly formed organization. In article one, we discuss why digitalization of the back office lays the groundwork for the opportunity for economies of scale before, during and after an M&A situation. You can read article one here. A unified platform is critical for more collaborative, efficient processes, as discussed in article one. To realize economies of scale, you also need more structured spend management and a better understanding of your supply chain. Spend analytics are key to this formula. In this article, we dive deeper into why spend analytics are critical for an optimized supply chain and discuss specific examples of uncovering pricing best practices through spend analysis to maximize cost savings. How do you achieve holistic spend understanding across two different organizations? Apples-to-apples price analysis and price benchmarking has traditionally been impossible because companies report the same transactions in completely different ways. In this example, the level of granularity captured in the GL process by Company A (left) is… continue reading
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