Spend analysis yields a wealth of data from which patterns and trends emerge to drive the development of sourcing strategies.

The goal is to allocate resources to acquisitions that align most directly with strategic priorities of the agency.

Segmenting that data on spending enables you to identify of categories or commonality of requirements to support a strategic approach to sourcing at an enterprise level. The data also provides the basis for the governance body to make fact-based determinations about the business rules and criteria that apply to manage demand and define which requirements really further agency objectives.

Segmentation then facilitates tailoring acquisition strategies to maximize efficiency and effectiveness. Consolidating and automating acquisition of routine and leveraged commodities offers the potential for lower unit prices, enhanced performance and better terms while dramatically reducing the time and resources devoted to low value, high volume transactions.

Taking an enterprise view will align key resources more optimally to high value strategic acquisitions.

Using performance-based approaches will enable the agency to more equitably allocate risk in getting contractors to share responsibility for delivering a successful outcome rather than just compliance with a government specification.

Finally, true strategic sourcing enables agencies to leverage diversity in the marketplace to capitalize on the strength of firms all across the size and socio-economic spectrum.

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