Home / Buyer Services / Risk Radar / The Risk Radar Knowledge Base / Financial Spend Summary
Cost Visibility Offering a comprehensive view of the financial transactions associated with suppliers, divisions and projects. This transparency is critical for understanding the true cost structure and financial impact of each supplier’s involvement in projects.
Financial Health Assessment By tracking total spend over time, you can assess a supplier’s financial stability. Unusual spending patterns or excessive outstanding payments may raise red flags and signal potential financial risk.
Project Performance Evaluation The ability to see total spend per project, both to date and outstanding, allows you to evaluate the financial health and performance of each project.
Supplier Performance Analysis The bottom table shows total spend per supplier by project and division over time, committed, current and outstanding provides granular view of each supplier’s financial engagement. This information helps in assessing supplier reliability, consistency and financial commitment to various projects.
Risk Mitigation With this data, you can proactively manage risks associated with supplier relationships. It enables you to identify suppliers with outstanding payments, assess their commitment to ongoing projects and take actions to mitigate financial disruptions or delays.
Decision Support The financial spend summary assists decision-makers in allocating resources effectively, making informed decisions about project continuation or termination, and optimising supplier relationships based on their financial track record.
Trend Analysis By analysing spending trends over time, you can identify patterns or anomalies that might indicate financial distress or irregularities within specific divisions, segments or projects. Early detection of such issues is crucial for risk mitigation.
Supplier Relationship Management This data helps in managing supplier relationships more strategically. You can reward reliable suppliers, negotiate better terms with those that consistently perform well, and address concerns with underperforming suppliers.
