Spend
analysis

Many clients have multiple ERP, master, and transaction databases, with limited coding of materials and suppliers. This leads to poor quality spend data. Furthermore, companies have no way to design their sourcing strategy and pipeline or identify tail end spend categories and areas of additional leverage. To address these challenges, we cleanse and aggregate spend data from different source stems, group suppliers using a proprietary database, and apply taxonomy lens to this cleansed data to give you readymade, configurable reporting at your fingertips.

Advantage

How we
Help

We cleanse, normalise, and aggregate spend data from disparate source stems, covering accounts payable data such as supplier information, spend value, spend volumes, invoice details, and PO details.

We are flexible with a vast majority of additional data sources such as contract and policy documents, travel and expenses, purchasing cards etc. We then remove duplicate data, undertake basic data transformation (e.g., foreign exchange currency) – finally creating a clean data foundation layer for our clients.

We then move on to the next phase – grouping suppliers and establishing supplier trees using a proprietary supplier database.

Finally, a taxonomy lens is applied to the cleansed spend data to determine spend categories at 4 levels. The taxonomy is often a blend of industry standards such as UNSPC, our own view based on other clients in a particular industry, and the client’s view of their own spend. Importantly, this is an iterative process to land on the first release – the final output is cleansed and classified data. These can easily be fed into client's internal reporting systems.

Clients can choose both the tools and/or underlying ‘cube’ technology to remain independent – engaging us for monthly or quarterly data cleansing/classifying services, as required.

What you
get

You finally have

  • Clean, classified spend output file at your finger-tips, all the time
  • Supplier hierarchy with no duplicate suppliers
  • Spend categorisation and taxonomy and 4 levels or more
  • Ready-made and custom reporting and insights on savings levers such as rate variations, tail-end category management, supplier consolidation – key inputs into your sourcing strategy and annual sourcing pipeline

success story

L&T cleansed and classified 10,000
line PO data

Identified 6 active suppliers (out of 65+). Developed localized taxonomy for coal gasification, fertilizers, shipping, and defence units, resulting in implementation of category management for the first time at Larsen & Toubro.