Identifying Opportunity Areas to Optimize

Spend
Diagnostic Report
September 5
th
, 2012
Agenda
Executive Summary
Analysis Findings
Proposal Solutions
Next Steps and Timelines
Executive Summary
EXPERTISE FOR REVENUE MANAGEMENT
Optimizing Spend
Identifying Opportunity Areas.
Visualization of Expenditure spread
across various departments.
Developing Strategic solution .
Using Deep Expertise to Propose
Pragmatic Solutions.
CHALLENGES ANALYSIS
OPPORTUNITY AREAS
Proposing methods to reduce cost and
complexity out of multitude of low-volume
vendors.
Recommending sustainable solutions .

Probing into the insights of Technology
Department.
Gaining Deep Visibility into Enterprise-
Wide Vendor Base.
SOLUTIONS
Agenda
Executive Summary
Analysis Findings
Proposal Solutions
Next Steps and Timelines



Analysis Findings
An extensive analysis of the yearly spend for the last 5 years shows that
there has been a significant spike in the spend starting from 2010.
1250
1264
1273
1445 1446
2007 2008 2009 2010 2011
Years
Yearly Spend
Yearly
Spend(Overall)
An increase
of more than
13%.
Analysis Findings (Contd.)
The Technology Department of SaRa Enterprises was the major contributor to the
sudden increase in spend for the period 2009-2010 increasing as much as 63% in
the same period.
1250
1264
1273
1445 1446
250
264
273
445 446
2007 2008 2009 2010 2011
Chart Title
Yearly Spend(Overall) Yearly Spend(Technology Department)
The Technology
Department contributed
31% to the total spend
63%
Agenda
Executive Summary
Analysis Findings
Proposal Solutions
Next Steps and Timelines



Proposed Solutions
Proposed Solutions



Extensive analysis suggested that the major contribution to the drastic rise in the spend for
the year 2010 came from the Technology Department.
The number of vendors increased from 30 in 2009 to 400 in 2010.
The spend can be reduced by negotiating the contracts with only a few vendors.
Based on our benchmarks, this would translate to a potential saving of 10% on the Technology
spend.




Agenda
Executive Summary
Analysis Findings
Proposal Solutions
Next Steps and Timelines



Next Steps and Timelines
Timeline
1
3
2
4
Identifying
new vendors.
Floating an
RFP
Shortlisting
Vendors
Contract negotiations
2 WEEKS
2 WEEKS
6 WEEKS
2 WEEKS
The proposed timeline is 3 Months.
3 Months