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5 Ways to Reduce Your Business Costs with Analytical Software

5 Ways to Reduce Your Business Costs with Analytical Software

Reducing business costs is not always easy, so a business needs to stay on top of their spending while assessing suppliers and mitigating spend risk or rogue spending. This is made extra difficult as many factors come into play each day making it unwieldy to address everything while retaining a solid customer base, saving money, and generating profits.

Using Business Service Management (BSM) procedures can help. BSM is largely becoming an integral part of modern business practices as it focuses on addressing customer needs while supporting how a business operates using technology-based solutions. Using technology to handle certain business functions and automate various processes into your operation makes it easier to run things successfully from day to day.

It’s Ready to Use Right Out of The Box

There’s nothing worse than getting brand new software and struggling to learn how it works before eventually giving up and moving on to something else. Most business analytical software is not only easy to use once it’s installed on your company’s systems, but it’s intuitive as well. The software interface puts everything you need at your fingertips without requiring you to set up anything other than inputting your current data into the program. The need to build an entire BSM interface or process is completely eradicated with the right software because it’ll handle those details for you. After that, the software helps measure success with certain spending management goals and provides direct access to any transaction’s details as you require them.

Quick Access to KPIs and Procurement Reports

The ability to quickly access the details of any transaction is an important way to measure spending and spending risk, but the software doesn’t stop there. Procurement reports based on typical procurement analytics like suppliers, commodities, and spending analysis are easy to access and presented in a way that’s simple to understand and helps provide insight into problems and potential solutions. KPIs—otherwise known as key performance indicators—help improve an organization’s efficiency and show progress toward the goal. Some of the better business analytics software have KPI-based dashboards available, allowing users to parse information based on these vital indicators.

Manage Contracts and Suppliers

Creating business strategies and understanding KPIs is great, but what about contract and supplier management? Managing your suppliers, vendors, contracts, and invoices is much easier with software that keeps everything in an easy access database that filters by PO, reputation, transactions, and other supplier-related details. Do you need to find out if a particular contract was paid out? What about finding a new supplier for a certain job? The software provides the analytics you need to make informed decisions. To further help with business cost reduction, the best software will always be agile and easily tailored to your own business, creating more overall savings with some amazing features to maximize every aspect of supply chain, procurement, cost reduction, and business management.

Create Custom Reports Unique to Your Business

Standard reports are a great way to assess business information at a glance, but sometimes a supply or procurement manager needs to dig a little deeper into a specific report. Custom reports are the best method to select the variables you need, when you need them. A dashboard with standard reports (like financial, procurement, and operations reports) and the ability to generate custom reports are all valuable features in analytical software. Some software even gives users the ability to drag and drop various data into a custom report to help create new risk assessments or strategies.

Assess the Fine Details of Any Transaction

Adding dimensions to your report assessments are part of the appeal of using data analysis to help run your business. Detailed, drill down reports—reports that let you look at specific aspects of the data on the report in fine detail—help summarize data while providing deeper levels of analysis for each and every transaction, PO, and supplier interaction.. Knowing the fine details and understanding the nuances of every transaction sets you on the path for success in future supplier interactions and spending scenarios. Using these reports is the perfect way to reduce business costs and create a future business plan that will be beneficial for all parties involved.


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by Dirk DeBie // Contributor to Businessing Magazine.

Opinions expressed by contributors are their own.