Assessments of procurement spending analysis. A case study in Dashen Bank, Ethiopia
No Thumbnail Available
Date
2017-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The lack of effective procurement spending analysis is often considered as a corporate epidemic that is keeping businesses from controlling costs and improve performance from their current mammoth procurement spend. Insufficient visibility and analysis of corporate spending information limit businesses ability to understand spending patterns, maximize buying leverage, execute informed sourcing and supply management decisions. Whereas effective spend analysis drive continuous improvement in contract compliance and supplier performance, optimize budgeting and planning, and the impact of change in cost and inflation. Dashen bank as a growing and expanding bank has deployed critical and often exorbitant information technology infrastructure, under take several own building construction and procure products and services, whereas the banks procurement appetite, variety, and complexity are continuously increasing and on the other hand the lead time for procurement is shortening. As the result, the understandings of procurement spend analysis and its effectiveness has vital importance and deserves close investigation. The study adopts a descriptive research method as it is more appropriate to portray a more accurate profile of practices, process or operations in relation to spend analysis in particular reference to Dashen Bank. As a case study, the research also involves an empirical investigation of the contemporary phenomenon within its real life context and provides a rich understanding of the context of the research. The data for the study was collected from 31 employees of Dashen Bank using structured questionnaire and structured interview from selected key staff. The questionnaire data were analysed using descriptive statistics and data from interview and document reviews were interpreted qualitatively. Therefore, in order to realize effective procurement spend analysis, there is compelling reasons for Dashen to develop new spend analysis programme and implement relevant tools, processes, enhancing competency of procurement spend analysis in order to achieving full spend visibility
Description
Keywords
Procurement, Supply Management, Spend Data Management