What is the purpose of spend analytics?

Spend analytics gives organisations valuable insights into spending patterns, helping them optimise their procurement processes, reduce costs, and improve profitability. Spend analytics involves collecting, analysing, and visualising information related to company expenses, offering a clearer understanding of where and how money is being spent. Reduce Costs Spend analytics examines expenditure and procurement data to uncover opportunities for cost reduction. These could include tasks like consolidating suppliers, negotiating better terms, or eliminating wasteful spending. It also helps identify redundant or low-performing suppliers and suggests consolidation for better pricing and volume discounts. Enhance Supplier Management Assesses supplier performance based on cost, quality, delivery, and compliance, helping identify top-performing suppliers and those that require improvement. Analysing spend also helps a business identify and mitigate risks associated with suppliers, such as the dependency on single-source suppliers or those with poor performance. Improve Transparency and Visibility Spend analytics provides a comprehensive overview of all expenditures across departments, categories, and suppliers. This allows companies to see the complete picture of their financial outflows. Analysing spending also includes various factors (like department, category, supplier, or geography) to help understand where the money is going and why. Better Budgeting and Forecasting Spend analysis uses historical data to create more accurate budgets and forecasts, aligning future spending with strategic objectives. Additionally, it identifies trends and patterns in spending behavior, helping predict future expenditures and plan accordingly. Additional Purposes of Spend Management Strategic decision making and stronger supply chain Improved compliance and risk management Fraud detection and policy adherence Optimisation and sustainability of procurement Support for negotiations and contract management

What are the key components of spend analytics?

The key components of any spend analytics solution are the following: Data Capture and Consolidation Spend analytics requires holistic software for tasks like data sources identification, data extraction, and data integration and consolidation. Data Cleansing and Normalisation Spend analytics software cleanses data, removing duplicates and correcting errors. Data enrichment adds additional data points for more strategic sourcing and contract management. Spend Classification and Categorisation Spend and procurement analytics organises expense data into relevant categories (direct, indirect, capital, operating) based on predefined classification structures. Category mapping each transaction to appropriate spend categories or subcategories (e.g., office supplies, travel, marketing, raw materials) to enable detailed analysis. Spend Analysis and Reporting Spend visualisation uses data visualisation tools (like dashboards, charts, and graphs) to present information in a clear and accessible format, allowing for easy identification of trends and patterns. Customisable reports and analytics tools that summarise key findings, such as top spend categories, supplier performance, contract compliance, and spending trends. These reports should be shareable with stakeholders across the organisation. Additional Tools Trend analysis and opportunity assessment Supplier performance and risk analysis Automated data refresh and processing Seamless integration with other business units Advanced analytics and predictive modeling

What is an example of spend analysis?

Spend analysis involves examining a company’s expenses to identify cost-saving opportunities, improve procurement performance, and enhance supplier management. For example, a mid-sized company might decide to analyse office supplies spending over the past year to optimise costs. The procurement professionals collect and cleanse data from invoices, purchase orders, and accounts payable records, then categorises spend into subcategories like “Stationery,” “Printing Supplies,” and “Furniture.” They discover that purchases are spread across 19 suppliers, with two accounting for 80% of the total spend. This helps them identify potential savings by consolidating purchases with a preferred supplier and standardising items. Based on these new insights, the business can now negotiate a preferred supplier contract, encourage bulk purchasing, and implement a standardised list of office supplies. Within six months, the company achieves a 15% reduction in spending, saves approximately $20,000, and reduces the number of suppliers, simplifying procurement processes and strengthening supplier relationships.

How can spend analytics help in cost reduction?

Spend analytics significantly aids in cost reduction by providing deep insights into a company’s spend patterns and identifying opportunities for savings. Here’s how: Identifying Cost-Saving Opportunities Spend analytics helps to pinpoint areas where the business is overspending or not taking advantage of potential cost savings. By analysing data across a variety of categories (such as suppliers, departments, and product types), companies can detect inefficiencies, such as redundant purchases, unfavorable contract terms, or excessive spending with non-preferred suppliers. Category management is an efficient way to do this. This type of visibility enables organisations to negotiate better terms, consolidate suppliers, and eliminate unnecessary expenditures. Reducing Process Costs Spend analytics will uncover the hidden costs associated with procurement spend. By identifying these patterns, companies will streamline their procurement strategies, reduce the number of transactions, and achieve economies of scale using bulk purchasing. Leveraged Supplier Management When you analyse spend data and supplier performance, organisations can identify which suppliers offer the best value and which may be a case of supplier risk. Spend analytics allows businesses to consolidate purchases with high-performing suppliers, seek out better rates, and negotiate volume discounts. It also highlights opportunities to renegotiate contracts, ensuring that the company is not overpaying for goods or services. Enhancing Compliance and Reducing Rogue Spend Analysing spend helps identify and mitigate maverick spend, where purchases are made outside of the approved processes or without leveraging negotiated contracts. By enforcing compliance with procurement policies and guiding employees toward preferred suppliers and negotiated terms, companies can control costs and ensure consistent pricing across the organisation. Improving Budgeting and Forecasting Detailed analysis of historical spend data enables companies to more accurately forecast future expenses and set realistic budgets. This reduces the likelihood of budget overruns and allocates resources more effectively, preventing overspending and optimising cost management.

How does Tipalti help in managing and analysing spend data?

Tipalti offers a comprehensive suite of tools that help companies manage and analyse spend data more effectively. Here’s how Tipalti assists in these areas: Spend Visibility and Analytics The Tipalti platform consolidates spend data from various sources into a single solution, providing a comprehensive view of all financial transactions and data. This centralisation in the spend analysis process helps in tracking and managing tail spend more effectively. The detailed dashboards offer customisable reporting and real-time insights into spend patterns, payment history, and supplier performance. This kind of visibility helps businesses analyse spending trends, identify areas for cost savings, and make informed financial decisions. Streamlined Payment Processing Tipalti automates the entire payment process, as a single source of truth, from invoice capture to payment execution. This reduces human errors and processing time, ensuring more accurate payments to suppliers and vendors. The Tipalti solution also supports multiple payment methods and currencies, facilitating efficient global transactions and reducing the complexities associated with cross-border payments. Enhanced Compliance and Risk Management Tipalti automatically handles tax withholding and reporting, ensuring compliance with local and international tax regulations and minimising the risk of penalties. Tipalti also includes features for verifying and onboarding suppliers, including KYC (Know Your Customer) and AML (Anti-Money Laundering) checks. This always ensures compliance with regulatory requirements and reduces the risk of fraud. Additional Features for Analysing Spend Data Automated invoice matching and approval workflows Self-service supplier portal to track payment status Budget tracking enabling more accurate planning

How does Tipalti streamline the process of spend reporting?

Tipalti optimises the process of spend reporting through a combination of integrated tools and automated features that enhance data visibility, accuracy, and efficiency. Here’s how: Centralised Data Collection Tipalti consolidates all spend-related data into a single platform, integrating with various sources such as: Invoices Payments Supplier information Centralising this data reduces the need for manual aggregation and ensures that reporting initiatives are based on a comprehensive and accurate data set. Automated Reporting The Tipalti solution provides a wide range of pre-built report templates that cover various aspects of spend reporting (such as supplier payments, invoice statuses, and transaction summaries). These templates save time by eliminating the need to create reports from scratch or Excel spreadsheets. Users can also create customised reports tailored to specific needs or business preferences. This flexibility allows for detailed analysis of spend data, such as categories, departments, or time periods. Real-Time Dashboards Tipalti offers real-time dashboards that provide visual insight into spend data. These dashboards include graphs, charts, and summary tables that enable users to quickly understand trends, spend patterns, and key metrics. These visual tools help users identify anomalies, track performance, and assess spend against budgets or forecasts, facilitating faster decision-making and better strategic planning. Additional Ways Tipalti Streamlines Spend Reporting Automated data integration with ERPs Compliance tracking with tax regulations Automated reconciliation with POs and receipts Benchmarking spend data against industry standards Automated distribution with scheduling of reports

What benefits does the real-time spend analytics dashboard offer in Tipalti?

The real-time spend analytics dashboard in Tipalti offers several key benefits that enhance spend management and decision-making for organisations. Here’s how it can benefit users: Real-Time Insights Tipalti’s comprehensive dashboards provide real-time insights and visibility into spend data. This ensures users always have access to the most current data available. This allows for timely decisions and responses to emerging trends or issues. Using Tipalti, you can quickly analyse spending patterns, identify anomalies, and track critical metrics without waiting for end-of-month or end-of-quarter reports. Enhanced Data Visualisation Users can tailor the layout of the dashboard and visual elements to focus on specific metrics, such as department spending, supplier performance, or budget adherence. These dashboards display spend data through interactive charts, graphs, and heatmaps that make complex information easier to understand and interpret. Visual representations help users quickly grasp trends and outliers. Improved Financial Oversight Tipalti dashboards enable continuous monitoring of spend against budgets and forecasts, helping to prevent maverick spend and ensuring financial goals are met. It also allows users to drill down into specific categories or transactions to gain deeper insights into spending behaviors and the root causes of variances. Additional Benefits Early detection of issues and proactive decision-making Trend identification to adjust strategies in a timely manner Automated alerts based on predefined criteria Data-driven insights with scenario analysis Performance tracking on departments, projects, or teams

Real-Time Spend Analytics and Insights

Gain unparalleled visibility with the spend dashboard. Experience next-level analytics at your fingertips, enhanced by powerful filter and search functionality.

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Spend Analytics Features

Make Better Decisions, Faster

Stay on top of your procurement strategy with seamless, real-time analytics that takes the guesswork out of spending. Our intuitive dashboard delivers instant visibility into your financial data, giving you the insights you need to make smarter decisions faster.

Real-Time Spend Analytics Dashboard

With our advanced spend dashboard, you get real-time request status, eliminating the need for frequent updates. A spend analysis dashboard view saves you time from toggling between multiple reports, streamlining decision-making and enhancing efficiency. The procurement team can also quickly identify saving opportunities and uncover bottlenecks in the approval process to streamline procurement further.

Effortless Spend Reporting

Designed to enhance efficiency, Tipalti eliminates the tedious task of offline data cleanup and segmentation. Filter data and custom fields to scope out your custom spend report, or leverage the free-text search to pinpoint exactly what you need—all on-demand.

A computer screen showing a Tipalti message about a pending approval request for an IT purchase. Two user icons labeled IT and Sales are also displayed.

A user interface displaying a "Suppliers" list with fields for created date, name, amount, and department. There are options for Contact Details, Banking Details, and Tax Details.

Repository of Spend Data

Our solution takes your spend analysis and consolidates all your spend data, including purchases, receipts, suppliers, and contracts. With the ability to quickly generate and export spend reports, you’ll smoothly navigate your spend data, extract critical insights, and ensure stringent control over your OKRs and KPIs.

Transparent, Scalable Pricing

Our flexible pricing adapts to businesses of all sizes. Pay only for what you use—no extra costs, no client-based fees. Simple, predictable, and budget-friendly.

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Platform Features

Work smarter, not harder

With AI and machine learning capabilities, an intuitive UX, and quick and easy global payments, you can drive unprecedented efficiency.

AI

Smarter processes. Instant insights. More productivity. Less manual work. Tipalti AI actually gets things done.

Global

Manage all entities’ payables operations from a single system. Enable each entity to operate with its own unique workflows and branding.

Tipalti Detect®

Proactively prevent fraud by identifying unusual patterns. Block suspicious payees from receiving payments, prevent them from creating new accounts, and get notified of abnormal activities.

Controls and Compliance

Stay up-to-date and protected automatically, with multi-jurisdictional tax compliance, built-in payment protections, and enterprise-grade controls and security.

Integrations

Pre-Built ERP Connections to Extend Automated Workflows

Easily extend and simplify your workflows with pre-built integrations and powerful APIs for your ERPs, accounting systems, performance marketing platforms, HRIS, SSO, Slack, credit cards, and more.

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How It Works

Up and Running in Weeks, Not Months

Collaborative customer support with customised onboarding to get you operational quickly

Step 1

Plan

Kickstart your success with a comprehensive setup call to review your procurement workflow, set up SSO integrations, validate technical configurations, and prepare for training.

Step 2

Configure

Our customer onboarding experts set up your Procurement instance, configure requirements, and complete the User Acceptance Test (UAT) for all the procurement workflows.

Step 3

Deploy

In-depth training for your procurement and finance staff on the Tipalti Hub and our end-to-end procurement capabilities, ensuring thorough knowledge transfer to turbocharge your successful launch. Once set, you’ll be ready to submit your first purchase order and officially launch Tipalti Procurement.

Step 4

Adopt

Boost user adoption using change management during launch. We’ll support you with best practices and communication strategies and fine-tune the needs for optimal adoption.

Step 5

Optimise

Our Customer Success and Support teams provide dedicated support, offering you continuous technical assistance by phone and email. They’ll learn your goals and offer tailored solutions to help you achieve them.

Customer Stories