Achieve your sourcing goals with the right data.
Lack of clear visibility into spend data prevents organizations from achieving value from their procurement data. Whether it is for cost optimization, compliance or supplier innovation, it all begins with having the right data.
Visibility of spend data across different geographies, spend units and business functions
Custom and uniform taxonomy with industry specific categorization
Aggregate data from multiple sources including ERPs, T&E, AP and P-cards.
Parent-child vendor relationship enrichment
Why is spend data categorization important to an organization?
The data from General Ledger (GL) and Accounts Payable is usually categorized from the Finance’s perspective. However, this categorization is largely not applicable from a procurement standpoint which requires spend classification into subcategories and granularity.
For example, a Microsoft Collaboration software payment will be categorized as ‘IT’ or ‘Software’ by Finance. However, Microsoft provides hardware, software, IT consulting and IT Infrastructure. Furthermore, within software it might provide software as a subscription, SaaS or server based.
Hence, identification and categorization becomes important to be able to form sourceable spend buckets and apply procurement levers of spend aggregation and vendor consolidation.
Industry Specific Taxonomy
We categorize 98% of spend by value and utilize a custom & uniform taxonomy which reflects industry purchasing patterns and sourcing efforts.
Taxonomy should reflect sourceable buckets to enable sourcing
Should represent sub-categories or level 3
Data residing in different system may be in different formats and taxonomies
Require inputs from business units and to form usable categories
The End-goal of Spend Analytics.
Every procurement team has a set of clear goals for sourcing and spend analytics. Whether it is cost optimization or risk mitigation, we can best tailor our approach to spend analytics to help you achieve these goals.
Usually seen as the fundamental deliverable, cost optimization can be attained through aggregation of spend and vendors, consolidation of contracts and finding alternative vendors.
Purchases through purchasing cards and other maverick spending can mean cash leakage. Spend Analytics helps identify such problems so that policies can be implemented to mitigate them.
Supplier Discovery, Diversity and Innovation
With spend analytics, organizations are better equipped to identify key suppliers and build strategic relationships with them. Spend analytics are crucial to Supplier Diversity and Innovation initiatives.
Supplier Risk Mitigation
Supply chain disruptions can put business continuity at risk. Identifying major suppliers and understanding the influence an organization might have over them is important for negotiation and mitigating supplier risk.
Vizualization and Opportunity Identification
Choose from 20+ spend report types to track and identify opportunities. View reports using the BI software of your choice including Tableau.
Visibility into suppliers across multiple spend tiers, domains, categories, sub-categories and business units
Uncover opportunities to bundle or unbundle spend with particular suppliers
Identify suppliers that are minority owned, women owned, small businesses etc. to increase diversity
Measure potential savings through spend aggregation and supplier consolidation