Description
Here the team collects and analyses information about past purchase trends, price history and overall spending. This is usually collected from internal customers or end-users. The team must analyse prices and costs, review the performance of current suppliers, and analyse the department’s risks and vulnerability. This is done to get a clear understanding of the organisation’s spending trends for this commodity in terms of Rand value, quantities, by whom, with whom and how often. It also involves determining future demand in line with strategic objectives. It may involve deconstructing the price to determine cost elements that will impact future price adjustments. The analysis of the value chain will assist in identifying the internal process from requisition to payment and where the bottlenecks are.
