Finally, a procurement system that not only predicts your future spend but ensures your savings hit the bottom line.

Transforming procurement insight to foresight will convert your claimed savings to true bottomline impact.

By establishing the procurement performance management software space, Sievo is advancing procurement performance beyond Spend Analysis.

Most companies have spent millions addressing backward-looking or pure operational issues. Now, they need to look in a new direction as well: forward.

Up to 80% of the value procurement can deliver is outside the procurement function. Going beyond spend and truly isolating root causes of spend development is an essential component to realize future sourcing initiatives.

Sievo’s Procurement Performance Management software does exactly that. Our solutions extract value from your investments in the traditional procurement and finance space by offering you added transparency in a way that supports strategic decisions making.

In other words Sievo not only helps you to answer the question of how much money have you spent in the past. We help you look at where and how much you will spend in the future.

• How much will you spend in the future?

  Answering this question is not as easy as it sounds. It requires knowledge of the past and a set of tools to model the future. These tools must be equipped to deal with a number of variables that will allow procurement professionals to cope with uncertainty beyond physical demand such as commodity price volatility and currency fluctuations.

  Sievo’s Spend Budgeting & Forecasting toolkit enables you to plan future spend and see the impact of different scenarios on profits, giving you a clear view of the road ahead. At the same time, Sievo’s Spend Visibility solution provides you a rear view mirror to help identify future opportunities.

• What is the future value of your portfolio of ideas?

  Ideas come and go. Knowing what you have in the pipeline by stage of development and the related expected value will help you make better business decisions. By pacing the value creation pipeline you will have the critical knowledge you need to accelerate certain initiatives, bring new initiatives in areas that are yet to be addressed, or even re-allocate resources on the most beneficial projects.

  Sievo’s Savings Program Management provides you the capabilities to manage your projects portfolio and pace your organizational efforts to meet future targets.

• Are you really saving what you said you would?

  Probably not. Many studies have shown that the final results of procurement savings programs are mixed. Typically, only 60 percent of projected savings are eventually captured. The other 40 percent remain a Power Point exercise.

  Much of the value tends to be lost on the way to implementation. Procurement officers may negotiate good deals, but the numbers are contingent on certain volumes, and organizations don’t comply. The prices of underlying commodities may change too, affecting the total cost, or currency and commodity prices fluctuations make a product more expensive.

  Often, companies don’t actually know how much savings are lost. The finance department measures the outcome by simple variance analysis, which is accurate as far as it goes but can only tell that aggregate costs are up or down since the prior year. This leads to endless wrangling between Finance and Procurement as they argue over what this number represents, with Procurement claiming cost savings and Finance unable to prove actual results.

  Fortunately, there is a better way. Sievo’s Procurement Controlling solution isolates the cost drivers. Using Sievo, it becomes much easier to take that aggregate apart and see where the results came from: is the decline in costs really due to procurement, or is it due more to a change in exchange rates and commodity prices, or a slide in demand? Once you integrate Sievo into your procurement tracking process, you won’t have to speculate. You’ll know.