Spend Intelligence: Product Scope Follow

Spend Intelligence provides you with the option to check Spend and Savings Drivers calculated based on Cost and Actual vs. Forecast details. Commodity Managers can analyze the dashboard graphs and tables to understand their annualized spend and savings along multiple dimensions. This can also be studied in the individual quarters Spend Intelligence dashboard. The main tab can be opened from the navigation bar page:

Product Scope

The platform can allow demands on commodities that are independent of any product (such as for spare parts, or when not all product demands have been provided to LevaData in the data loads). If there is a discrepancy between the commodity demands projected from the stated product demands and the stated commodity demands, the platform automatically reconciles by treating excess commodity demands as independent demand.

We have made an explicit distinction between product demand in terms of "in-factory" or "starts" demand needed to build the stated volumes of the product as opposed to the "ex-factory" or "outs" demand of the product volumes that need to be completed or shipped in each period. By default, all product and commodity demands are assumed to be in-factory demands and the spend and savings analytics are based on the in-factory demands only.

Upon opening Spend Intelligence in Product Scope, you will view the following three major tabs:

Product

Spend & Saving Drivers

First you will see Total Spend, Total Savings and Saving % in the top scoreboard. The top spend drivers are shown in a donut graph and table. What information you see is driven by the View menu in the top right of the interface.

Top Three Calculations

Within Spend & Savings Drivers users will be presented with Total Spend, Total Savings, and Saving %. These values are filtered to the time period selected at the top of the interface, and any variables you have selected in the interface (i.e. drilldown to a unique commodity or global commodity manager) and are meant to be a summary indication of the following calculations:

$$\text{Total Spend} = \text{Sum of MPN Spend}$$

$$\text{Total Savings} = \text{Sum of CPN Savings}$$

$$\text{Saving %} = \frac{\text{Total Savings}}{\text{Total Savings} + \text{Total Spend}} * 100$$

Saving % represents the proportion of the total spend that was saved.

Filtering

Even though the full interface permits it (because of use in other modules), you should not attempt to use Commodity Scope filters in Product Scope, as the results will not be consistent. In Product Scope, you should only attempt top-level filtering by the same items seen in the dropdown view:

• Product
• Product Family
• CM/ODM
• Business Unit

Within Product Scope, you can only use the Commodity Manager filter on the Product/BOM Tab

If you wish to conduct an analysis with commodity-based filters (like any of the following):

• CM/ODM
• CPN
• Commodity
• Commodity Manager
• MPN
• Manufacturer
• Normalized Manufacturer
• Sub Commodity

then you should toggle back to Commodity Scope:

Navigation

You can click on any value in the graph or line item in the table to filter down other elements on the page to that unique value. You can also left click into any table or graph sub-section and get the option in the upper right to (1) expand the section to full page view or (2) Export to .CSV or Excel Workbook for further analysis.

Savings Drivers are presented in a bar graph with an accompanying table. The Spend Details section is pivot table which can be sorted and filtered and shows spend Product spend for outbound quarters by a variety of metrics.

Spend Overview Tab

Spend and Saving Overview By View: The table shows an overview of these values per quarter for outbound quarters.

Spend and Saving Overview By Year: The table shows an overview of these values in yearly rows with quarterly columns.

Cost Tab

Product Cost Detail Table: provides a detail view of Product Cost, BOM Cost and Transformation Cost for a product and product family by quarter. At a high level, Product Cost is the combination of BOM Cost and Transformation Cost. BOM cost contains the details of component costs whereas Transformation cost is additional factors (e.g. Labor, Freight, Material Markup, etc.). These costs can be examined in the BOM and Transformation tabs which will address later in the article.

Forecast Tab

Forecast Drivers: The graph provides a donut chart with total forecast highlighting top 25 dimensions with total forecast amount in center. The table shows these values in tabular form. The dimensions can be changed using "View" drop down in the upper right of the interface. Selecting any driver value in the graph or table will filter the values in other graphs and tables on the tab.

Forecast vs Actual: This table shows the forecasted and actual values for every selected quarter with the rows corresponding to the dimension selected with the View filter in the top right of the interface.

Master Forecast Table

Master Forecast Table: shows a pivot table of all product values with their respective forecast and actual demand values outbound by quarter.

BOM (Bill of Materials)

The BOM tab shows BOM cost details. Spend and savings are displayed on the portion of the commodity demand that is projected from the product demand. This tab has the same product and commodity views, so you can view this data along both product and commodity dimensions with the View dropdown in the upper right of the interface.

Important Note: The spend numbers in BOM tab may be different from Product tab since Product tab includes Transformation spend as well.

Spend and Savings Details by Site Level and Global Level: Shows a detailed pivot table with spend and savings analytics provided via CPN Savings by CM/ODM as well as at a global level across all sites.

• Site level means only at the CM/ODM site level
• Global level is across all CM/ODMs globally

When site-specific costs are different, the Global level costs and savings are calculated by taking an average weighted by relative spend across sites.

Transformation Tab

Note: Access to this tab is controlled by user permissions, so you should speak to your organization's administrator for access if you do not see it and believe you should. Many organizations restrict access to transformation cost details by default.

The Transformation tab shows the details of transformation and value-added costs associated with each product. Like other tabs, the Transformation tab will update based on input to the View by dropdown in the upper right of the interface.

You will have three main tabs to analyze: Spend, Spend Overview, and Cost. Many of the detailed tables will present you with a discrete breakdown of the transformation activity so you can analyze that spend and cost for those activities associated with your product, product family, or business unit.