Spend Analytics & Management Practices

Without a well-structured category hierarchy, usable data, visibility, and insight into the existing spend with suppliers across categories, how can an organization make informed decisions on category management, optimize sourcing strategies, leverage spend power and manage suppliers?

The answer to the question is simple - they can't.

The good news is that Nitor has enabled many global and national organizations to address issues in spend analytics and deliver effective spend management practices. This groundwork paves the way for building and maintaining a best-in-class Procurement organization.

Many organizations don't see the true opportunity as they have poor visibility into supplier spend caused by:

• Lack of line level information to make the spend data useful
• No single natural category hierarchy/taxonomy to correctly classify spend
• Technology solutions not being fully utilized to aid dynamic review of spend
• Errors in the vendor master causing multiple instances of the same supplier
• Poor training on methodology of how to analyze spend

Avoiding Poorly Managed Data

Poorly managed master data can create unnecessary risk and put significant savings out of reach. Bad data in disparate systems in several purchasing departments affects business operations and requires high manual effort to even make it partially usable.

Many organizations don't see the true opportunity as they have poor visibility into supplier spend caused by:

Master Data Management and Governance

Data Cleansing & Enrichment

Data Classification

Spend Review & Reporting

Opportunity Analysis