Practitioners must spend many person-hours manually reviewing the data to recommend corrections for product name, commodity name, accurate coding, and multiple use cases (i.e., internal expense, customer orders, etc.).

The goal is to correctly classify the data so that procurement category managers can categorize all spending and optimize procurement’s leverage opportunity to drive cost reductions and value add improvements such as supply base optimization.

However, person-hours are limited today, so what can be done to map data to a structured and enriched catalog which will lead to consolidated spending per vendor, improved cost, improved process compliance, and reduced risk?

Best practice recommends developing a project plan to improve data quality by 10% to 20% each year for 3 to 5 years. Doing so will result in spending data that accurately maps to the appropriate commodity codes at a rate in the 65% to 80% range enabling the company to rely on the projected cost savings.

The project plan should include a spend analytics solution with an outsource provider that will provide human assets to assist your team in improving data through an easy-to-use mapping solution so changes can be tracked to recover lost savings and enhance reporting of analytics, thus reducing wasted management effort on analyzing inadequate quality data.

ROI will rely on increased negotiation leverage based on consolidated spending, leading to lower costs, better forecasting of need based on data insights, and improved supplier adherence to KPI, enabling inventory turns, meeting customer KPI, and enhancing the organization’s brand perception.

Like to learn more about this topic?

If you would like to explore ways business process outsourcing (BPO) could help your business due to resource constraints and talent gaps, please contact us to discuss how we can help meet your needs.

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issue, please get in touch with
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Interested?

If interested in further exploring this
issue, please get in touch with
to schedule a call or ask questions.

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