Spend Intelligence Overview Follow

In this video, we will provide an introduction to our Spend Intelligence feature, which helps you navigate and analyze your direct materials spend and savings, as well as view the underlying demand and cost drivers.

Landing on Spend Intelligence

When you log into the platform, the first page you land on is Spend Intelligence. This first widget provides a summary of KPIs of your spend. By default, you will see:

• Your current fiscal year

• Your current spend

• Your previous year spend

• The change in spend year over year

Similarly, you can see your component demand and percent of change. In a commodity scope, demand is based on your product forecast and the usage of each component, or part, in your product bill of materials.

Understanding Manufacturers and Parts

Next, we show:

• The number of contract or original design manufacturers

• The GCMs or Global Commodity Managers assigned to your components

• The count of unique manufacturers in your dataset

The normalized manufacturers signify the unique manufacturers that have been standardized due to variations in your data. For example, your data may list parts from Texas Instruments Incorporated and TI. We have identified this and standardized it to TI.

Lastly, we count the unique MPNs and CPNs we've loaded and compute an MPN to CPN part resilience ratio.

My Overview Widget

The My Overview widget allows you to view and break down your spend by different categories. By default, the My Overview donut chart shows spend by commodity. You can also see spend by other dimensions, such as:

• Sub-commodity

• Contract manufacturer

• Manufacturer

• Commodity manager

Additionally, these widgets offer a way to filter the data you are observing. For example, if you want to look at Ken's spend, you can click on Ken, and all the widgets on the dashboard will update to reflect Ken's spend.

Timeline View and Filters

Next, we have a timeline view of that spend that can be broken down by the same groups. At the bottom of this page, by applying filters to the charts or in combination with the scope filter, you can access a list of parts detailing their cost, demand, and total spend based on your selected filter criteria.

Savings Awareness

The next tab in Spend Intelligence gives you visibility into your savings. There are multiple ways to calculate savings:

• Comparing them to earlier baseline quarters, such as the previous quarter or the last quarter of the prior fiscal year

• Using standard cost

If your finance department tracks standard costs at a CPN level, these can be loaded for the current fiscal year, enabling you to calculate savings against that standard cost.

The first widget here will show you where your costs increase, decrease, or stay flat. Clicking on Increasing shows parts with a cost increase. You can observe the trend and break it down into different categories. For example, you can see which manufacturers are driving cost increases, such as Texas Instruments.

The Spend and Savings detail table provides the list of parts based on the filter criteria, in this case, all the TI parts with increasing cost.

Cost Detail

The Cost Detail tab provides all the CPN and MPN cost details. You can toggle between CPN or MPN cost views. The Master Cost table provides:

• Lead times

• MOQs

• Splits

• MPN cost and savings

• CPN cost and savings

Component Level Demand

The last tab in Spend Intelligence provides visibility to the component level demand, both the forecast and actuals. These tables provide visibility to the component demand driving your direct material spend. The Demand Breakup and Forecast Details table shows your forecasts and actuals. If you've also loaded on-hand inventory, it will be available in the fiscal quarter.

Conclusion

Thank you for watching our overview of Spend Intelligence. We walked you through how to analyze and break down your direct material spend and savings, and how to view the underlying component level cost and demand drivers.