We couldn’t resist the temptation at this Halloween to give you a scare, so we thought we’d dig up (yes, with shameless puns included) the tricky topic that many procurement professionals would like to see buried (see where this is going?) for good.
You’ll know how successful management of spend data is crucial to the business, as it gives invaluable insight that can help you develop successful spend strategies.
Managing data in the real world, however, can be a daunting task. It’s difficult and time-consuming to make sense out of a scarily huge amount of information, especially when it comes from multiple sources and systems.
Spend data management doesn’t have to be a nightmare. With the right tools, you can access accurate and detailed information, obtain meaningful insights and drive successful sourcing decisions effectively.
Here’s our 4 recommended spooktacular Halloween best practices to help you tackle your spend data management challenge.
1.Pull data from all sources into your analysis cauldron
To understand spend patterns you really need to have complete visibility over all your data, from every single source – ranging from credit cards spend to supplier invoices. This can be a challenge for big organisations as data can be inconsistent due to the use of multiple systems, in multiple formats and languages. By investing into a comprehensive system such as web3 Spend Analysis, data can be unified, cleansed and classified automatically.
2.Dig deep when it comes to classification
ERP systems are designed for transaction process and control, but not built to provide granular reporting and analysis. Often detailed information is missing and structured in a way that procurement professionals struggle to get any insights from.
By investing in the right spend management tool, you can adopt a common classification schema enterprise-wide, so you can have a complete overview on your data. Procurement professionals can also drill down to the level of detail they need, turning insight into actionable savings.
3.Understand the cobweb of supplier relationships
By having a clear understanding on your suppliers and their ownership structure, it will be much easier for you to spot price variances as well as negotiate price where scale exists. You can also build a more positive relationship with your identified strategic suppliers, while reviewing those with limited spend or business value, and potentially run sourcing events to consolidate them down.
With a decent, reliable platform such as web3 Spend Analysis, you can enrich your supplier data by sourcing their information from existing data bases. Choose a reputable data service provider such as Dun & Bradstreet or DueDil to ensure data accuracy and minimise suppliers’ risks.
4.Let integration cast its spell and turn data metal into gold
Analysis software should be integrated with other procurement and transaction systems. For instance, with proper integration, users can set up new sourcing events using automated feeds of supplier information and spend data allowing them to action the identified savings or consolidation opportunities into new sourcing outcomes much more quickly.
Wax Digital web 3 Spend Analysis
With unique Artificial Intelligence that can learn from your history and from a pool of our clients around the world, web3 Spend Analysis can give your organisation accurate, comprehensive and detailed information, helping you to deliver savings and improve processes. Download our Spend Analysis Product Paper.