Data Analysis Skills and Thinking

Bozarth, C. C., & Handfield, R. B. (2019). Introduction to operations and supply chain management (5th ed.). Pearson.

Prior to beginning work on this assignment, read Chapter 7: Supply Management.

Operations and supply chain managers as well as professionals in purchasing engage in strategic sourcing processes, and they demonstrate how spend analysis, total cost analysis, portfolio analysis, and weighted-point evaluation models can be used to support strategic sourcing efforts. Purchasing managers, for example, spend more time on strategic sourcing activities, such as spend analysis, supplier evaluation and selection, and make-or-buy decisions. All of these activities require individuals with a solid mix of quantitative and interpersonal skills. This assignment will enhance your skills in these important areas.

In your paper,

Explain in detail why data analysis skills are so important to spend analysis.
Describe how a structured process such as Six Sigma methodology (Chapter 4) can be useful to identify spending patterns and opportunities for improvement.
Recommend which functional areas of the business, such as finance, should be involved in spend analysis efforts, and justify the rationale for your choices.

SAMPLE SOLUTION

Data Analysis Skills and Thinking
Data analysis is often regarded as an important component of any business practice. Through data analysis, organization’s management can improve logistical process, improve financial planning and other aspects in the operationalization of the organization. In purchasing and supply chain management, one important data aspect is the spend analysis which is implemented with the aim of reducing the procurement costs while at the same time improving organizational efficiency through visibility and transparency (Bozarth & Handfield, 2016). The focus of this paper is on how spend analysis can be used to improve business procedures. The paper will also look at why finance is an important component of spend analysis.
Importance of Data analysis Skills in Spend Analysis
Spend analysis is defined as a level of procurement procedure used to optimize the buying behavior of end users. It is a pillar of spend management which is used alongside…