19 September 2007 | Paul Snell
Most firms cannot increase cost savings because they are still collecting purchasing data manually, according to new research.
A study into spend analysis published by Aberdeen Group found that 60 per cent of firms are still analysing their spend manually, without the help of technology. This leads to limited visibility, making further cost savings hard to find.
The survey, which examined 700 worldwide firms' spend analysis, also revealed that one third of companies have no system in place to examine and analyse spend data.
But the research group also found that senior executives are taking more of an interest to close the gap between savings identified and those made. Some 25 per cent of the users of spend data were CFOs and 10 per cent CEOs. Just under half of respondents felt that poor quality data was their biggest challenge.
Although 38 per cent of firms believed that introducing technology was the best way to improve their spend analysis, Aberdeen recommended that firms get support from executive teams and standardise processes across the company.