ADVANCED ANALYTICS

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OVERVIEW

Most senior executives recognize the value of capturing data from customers, operations, market dynamics, etc. With the rapid movement towards digital solutions, gathering this data is becoming easier every day, but cleansing and interpreting this data can be its own challenge. DPO&Co is comprised of world-class analytical thinkers that can manipulate and interpret data to develop insights; we also are strategic thinkers who can evaluate insights to develop alternative strategies and strong communicators who can articulate these alternatives into an implementation plan.    

CASE EXAMPLE

8-Week project: Developed a comprehensive spend transparency reporting tool for a client in the process industry, unveiling ~10% savings opportunity across multiple spend categories


Situation

  • Client had been growing at a rapid pace for the previous 5 years and was recently faced with intense competition from a new player in the market 
  • Management was feeling pressure to improve the bottom-line to increase overall margin and meet investor expectations 
  • Client had no visibility into what was being purchased, from whom, or at what price 
  • Spend database was not maintained properly and spread across different divisions   

Approach 

  • Extracted spend data from disparate sources and validated information with key division stakeholders 
  • Cleansed data and categorized cost based on category tree / group as seen by the business 
  • Created allocation rules / logic to ensure future inputs are categorized properly 
  • Led multiple workshops to validate spend tool results with business, procurement and finance groups   

Impact and Results 

  • Provided one true source of spend in the company, which could generate key information such as top spending suppliers, top category spend, and any supplier consolidation opportunities  
  • Identified sourcing opportunities and initiatives to help improve margin across several direct and indirect sourcing categories (e.g. packaging, MRO, office admin items, etc.), segmented by quick wins via e-auction or re-negotiation and key category strategic sourcing deep dives  
  • Established sourcing wave plan and savings estimate delivery for the next 3 years