A great success story since 2010 of ‘Procurement Data Management’ including Spend data, Contracts data, Commodity hierarchy, Business hierarchy, Opportunity pipeline, T&E, P-cards, Supplier master, Material master.
Spend Data Landscape:
$60bn+ annual spend – Direct and Indirect
40+ Business Units including Upstream, Downstream, Shipping, Alternative Energy, Retail Distribution
100+ Accounts Payable system
50+ countries
25+ languages
15mn+ annual line item transactions
Home-grown Data warehouse with a rules based classifier
Business Challenges:
Only 70% spend visibility with $15bn+ spend classified as ‘Unknown’
Less than 60% spend accuracy
Inaccurate business cost allocation
Extremely Low user acceptance
ProcurEdge Solution:
Consulting and Designing multiple commodity hierarchies for different businesses
Design of an automated classification solution
Using Artificial Intelligence (AI) solution for spend classification Implementing a Cost-Center based business hierarchy spend allocation
Success KPIs:
99.5% spend visibility
93%+ Auto-classification
Monthly refreshes with 1mn+ line items in 2 weeks
Integration of Amex line item data with $0.5bn annual spend and 400% increase in user adoption
Aluminium Profiles Manufacturer
Our client was seeking to reduce its cost base quickly by improving the way the organisation procured goods and services. Spend Data Analysis was the key to identify existing opportunities through consolidation of spend across several business units.
Spend Data Landscape:
€6bn+ annual spend – Direct and Indirect
20+ Business Units
20+ Accounts Payable system
15+ countries
10+ languages
15mn+ annual line item transactions
Business Challenges:
No formal spend analysis program
Complex Direct spend including extrusion dies, tooling, components, etc.
Significant East European language spend
ProcurEdge Solution:
Designing data templates for extraction of spend data from multiple systems
Transforming and rationalising multiple data sets into a common spend analysis program
Designing a custom classification hierarchy for Direct and Indirect spend
Artificial Intelligence (AI) solution for spend classification
Success KPIs:
99% spend visibility
96%+ spend accuracy
Monthly refreshes with 0.5mn+ line items in 2 weeks
