Direct Spend Analytics and Forecasting

Key Performance Indicators for your Business

Globalization of production and procurement coupled with the proliferation of big data across disparate systems means it takes too long for companies that manufacture finished goods to get visibility on inventory, commodity procurement and financial metrics. At the same time, increased competition has resulted in thinner margins while price volatility is a perennial challenge.

OpenLink’s Direct Spend Analytics and Forecasting (DSAF) solution for commodity procurement and direct spend measurement on finished goods provides end-to-end visibility of the value chain for timely decision-making. Key Performance Indicators (KPIs) which would otherwise take weeks to produce are available in near real-time, with customizable dashboards for finance, risk management and procurement. As a result, manufacturers have the information they need to improve margins, optimize hedging and hit procurement benchmarks.

We provide unmatched flexibility to model raw material inputs, finished goods and entities by automating the collection and aggregation of data along the supply chain from production forecasts and targets, raw materials coverage, plan price and volume benchmarks to transactional data, sale volumes and prices for finished goods sold from each plant.

With all the underlying data available, users can quickly drill down to analyze what is happening and why, or evaluate the impact of events with our advanced scenario analysis tools. Crucially, we provide pricing analytics for valuing the commodities portfolio and inventory mark to market (MtM), to better explain profit and loss (P&L) and how market volatility is affecting business performance.

DSAF provides visibility of total spend by commodity, business unit and finished good, as well as the impact of ancillary costs. As a result of this transparency, you have actionable information to improve margins; for example, by hedging price volatility, trade-offs on origination, and using different transportation options.

Our solution reports on procurement targets down to individual products, providing an early warning of deviation from plan so you can take corrective action in time. And with a single system providing transparency across manufacturing entities worldwide, you can ensure inventory/forward commitments are aligned with production forecasts.

In addition, you can set up multiple bills of materials for manufacturing each individual product and model the commercial impact of switching raw materials where this is an option in the manufacturing process. We also provide models to help you maximize margins for each product with CPI adjusted sales forecasts.