Structured spend analysis

Abstract: In the ongoing joint venture between Ericsson and ST Microelectronics, EMP spend data needed to be extracted, consolidated and analyzed to support the ongoing joint venture. Provide an understanding what spend analysis is and how it can support the business and operations in the company. Purpose: The purpose with this master thesis was to create a foundation of spend analysis knowledge at the company and how this can be used for the purchasing department at ST‐Ericsson. The study clarified weaknesses and gaps how the function works today in this area and recommendations how spend analysis can be conducted at the company. The author proposes changes to the new company and new information about spend analysis, how the purchasing department can use this sort of tool in their business and operations. Methodology: The working procedure for this master thesis was to analyze current situations and find gaps where ST‐Ericsson should concentrate efforts to secure spend visibility and conduct analysis of spend in the new company. Logical reasoning in the company’s current spend to find weaknesses and opportunities in reducing costs. Conclusions: The company should focus on securing their processes for extracting and consolidating spend data. Considering new commodity classification to easier find opportunities and pooling spend with parents companies. Finally implement recommended spend analysis tool for analyzing both Performa spend and future spend in ST‐Ericsson.