$3M
savings identified in IT and hardware consumables (Apple, Dell, and similar suppliers)
99%
of spend visible with Level 3 categorization
3 weeks
to initial implementation
Client
One of the largest social networking platforms, with $3.5B in revenue. Headquartered in San Francisco, with 25 offices globally.
Objective: visibility over tail spend and P-card purchases to increase compliance and identify opportunities for savings.
Challenges
- Large number of suppliers in tail spend
- No visibility into tail spend suppliers.
- Challenge with compliance and non-PO spend
- Categorization challenge
- Large purchases on P-card
- Several different P-cards including cash cards. Difficulty in data reconciliation.
Solution
Proacure worked with the procurement team to set objectives for tail spend analysis and discuss the challenges faced. P-card and AP data were collated, and tail spend was categorized using an agreed threshold.
The team reached visibility of 99% of spend with Level 3 categorization through a combination of AI and human intervention. A uniform taxonomy was used and aligned with the procurement team. Initial implementation took around 3 weeks.
- Views by cost center, location, category, subcategory, etc.
- Opportunity identification, scored with the team based on ease of implementation and estimated financial impact.
- Rationalized suppliers
- Reporting and Dashboards
Results
Complete visibility and categorization of spend data, including tail spend and P-card spend, with the ability to drill down. Identification of savings opportunities.
| Category | Finding |
|---|---|
| IT and hardware consumables | Identification of $3M savings, specifically consumable purchases from Apple, Dell, and other similar suppliers in the subcategory. |
| Market research | Only 25% of companies accounted for 91% of spend. Rationalize the number of suppliers in this subcategory. |
| Janitorial | 250+ suppliers accounting for around $10M spend across divisions. Aggregate facilities management to optimize cost. |
| Consulting | 1000+ companies. Identified service buckets and suppliers for rationalization. |
Why Proacure
- Categorization accuracy.
- Categorization up to 100% of spend data for complete visibility.
- Customized Reports based on objectives.
- Expertise and estimations for savings to help you identify real opportunities.
- Quick turn-around time.