SOURCE: Bristlecone

January 30, 2008 09:00 ET

Bristlecone's Spend Analysis Solution Provides Key Step for Companies to Fight Procurement Waste

Leading Supply Chain Consulting Firm's Rapid Consolidation and Analysis of Direct and Indirect Spend Delivers Rapid Enterprise-Wide Value

MILPITAS, CA--(Marketwire - January 30, 2008) - Bristlecone, one of the industry's most trusted supply chain business advisors, today unveiled its new packaged service that enables procurement organizations to better understand their procurement spend and use this information to drive supply base rationalization.

"The proliferation of suppliers and contracts, along with the prevalence of maverick spending in enterprises today, makes it difficult for procurement executives to manage spending and measure supplier performance," said Ashok Santhanam, Bristlecone president and CEO. "Today Bristlecone is leveraging its practical experience in procurement and sourcing and delivering a comprehensive packaged service offering to analyze spend and identify cost saving opportunities. This offering is designed to have a powerful, observable impact on any organization's bottom line in a very short time."

Businesses lose millions of dollars when the corporate procurement process fails to consistently track what they're buying and from whom, and thus lacks the data to create and enforce best practices in purchasing. Through dozens of client engagements across multiple business sectors, Bristlecone has found that companies can shave 3% to 6% off their total spend simply by analyzing purchases across all areas and all suppliers, then leveraging this data to create programs to reduce maverick buying, cut back on the total number of vendors used, and negotiate stronger buying agreements.

The difficulty in accomplishing this lies in finding and aggregating all spend data necessary. First, data is typically stored in multiple databases on different systems; for example, it may exist as individual transactions in ERP systems, in eProcurement systems like Ariba, or even as travel and expense reports. Additionally, different codes are often used to describe the same supplier or commodity across divisions or even within the same division. This makes it difficult to aggregate similar types of data and combine spending across commodities, locations, suppliers, and programs because few companies use standard item codes across all these systems. Relationships -- such as parent/subsidiary relationships -- between suppliers aren't defined, or are difficult to decipher within a business application or database.

About Bristlecone's Spend Analysis Solution

Bristlecone's new turn-key spend analysis service offering provides companies with the information necessary to identify opportunities and their savings potential, determine the amount of disruption expected from such programs and assess how receptive the organization will be to the change. Using such analysis, a procurement department can then prioritize and implement "quick wins" -- changes that will prove easiest, most beneficial or quickest to make.

Specifically, Bristlecone has developed pre-built connectors into leading systems including SAP, which extract existing information that companies track, in the form of invoices, purchase orders and receipts. Through both automated tools as well as industry experts on the Bristlecone team, the data is then cleansed, normalized, and categorized, and re-located to a centralized master data management (MDM) database. Where necessary, Bristlecone consultants will also, enrich the data which information such as parent company or minority ownership information, giving customers the most clear picture possible of all vendors, enabling companies to better source opportunities, track non-compliance with purchasing policies, and improve data management.

About Bristlecone

Bristlecone, (www.bcone.com) is a leading consulting firm focused on helping clients maximize the strategic value of their supply chains. Across over 100 engagements ranging from supply chain strategy and network design to supply chain system implementations, Bristlecone clients have realized the promise of the Bristlecone Advantage: value through focus; first-hand, real world experience; focus on business results; rapid time to value; and full accountability through fixed fee/fixed time service delivery. Headquartered in Silicon Valley, CA, Bristlecone helps clients across North America, Europe and the Asia/Pacific regions realize high business impact from improved supply chain planning, sourcing, execution, analytics, and data management, and has been continually acknowledged by industry analysts as a leader in solutions for the extended supply chain. Bristlecone clients include globally recognized companies such as ABB, Applied Materials, Exxon/Mobil, Freescale Semiconductor, HP, Mahindra & Mahindra, Nike, Qatar Petroleum, Ranbaxy, Silicon Labs, Sony, Unilever and Whirlpool. For more information please visit www.bcone.com.

Contact Information

  • Media Contact:
    Amanda Orr
    Kickstart Consulting for Bristlecone
    (202) 248-6766
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