$[$WLOs: $1,2,3][$CLOs: $2,3,5]$

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.