Challenges to obtaining accurate spending information
Procurement executives need deep insight into what is being spent, with whom, and for what, so that they can leverage this information to rationalize supply base, improve compliance with contracts, reduce maverick spending, prioritize sourcing efforts, and reduce supplier risk. Why can’t they get what they need?
- Spend data is scattered across multiple systems, in a variety of formats and from varying sources.
- The data suffers from quality problems – often the same supplier name in different records is either spelled differently or has different codes.
- Without an industry classification code for each item (or when different codes are used to describe the same item across different systems) it is not possible to get an aggregate view into how much has been spent on same or similar items.
- Relationships between suppliers (such as wholly owned subsidiaries) are rarely identified within various systems, so it is difficult to get information on actual spend by supplier, including all subsidiaries.
Data Preparation
Menigma utilizes sophisticated processes to accurately and quickly cleanse the data, normalize it, add classification information, and enrich it.
Data Validation
Data Validation: Match inventory items against standards, and then format, correct, and resubmit for authorization.
Data Cleansing
Use rules to remove special characters, expand common abbreviations and acronyms, and remove unwanted numbers
in name fields.
Supplier De-Duplication
Identify and remove duplicate suppliers using advanced algorithms. Consolidate spend information across duplicate suppliers.
Spend Classification
Categorize spend data records with standard taxonomies like UNSPSC, SIC, NAICS using advanced learning based algorithms or customer specific taxonomies as required.
Supplier Data Enrichment
Enrich supplier information to include parent/lineage and diversity information..
What We Do
Menigma Infosystem solution can provide a client with the following
capabilities:
- Take data extracts from multiple data warehouse, purchase order, T&E, Pcard files, and AP systems
- Consolidate the datasets into one global database
- Cleanse, de-duplicate, and standardize the data
- Categorize the data to UNSPSC at the lowest level of detail possible (or your preferred taxonomy such as SIC, NAICS, homegrown, etc.)
- Enrich supplier information by adding content such as MWBE and parent-child relationships (optional and incremental fee)
- We provide our Spend Analysis service as an initial run to analyze data of a desired timeframe (for example, one fiscal year). Following the initial reporting, the data can be refreshed on a repeatable basis, such as quarterly or monthly, to incorporate new and ongoing spend into the analysis.
Supplier Spend with Incomplete Data
- 70% - ABC Chauffeured Limousine - $1,189,000.00
- 20% - Not Available - $346,010.00
- 10% - A Taxi Cab - $165,681.00
- 0% - A 1Gold Star Limousine - $588.00
- 0% - Lanx, INC, - $1,013.00
- 70% - ABC Chauffeured Limousine - $1,189,000.00
- 20% - Not Available - $346,010.00
- 10% - A Taxi Cab - $165,681.00
- 0% - A 1Gold Star Limousine - $588.00
- 0% - Lanx, INC, - $1,013.00
Supplier Spend with Corrected Data
- 55% - ABC Chauffeured Limousine - $1,476,000.00
- 21% - Lanx, inc - $557,850.00
- 13% - Advance Auto Parts - $331,687.00
- 06% - A Taxi cab - $165,681.00
- 05% - A1 Gold Star Limousine - $142,911.00
- 55% - ABC Chauffeured Limousine - $1,476,000.00
- 21% - Lanx, inc - $557,850.00
- 13% - Advance Auto Parts - $331,687.00
- 06% - A Taxi cab - $165,681.00
- 05% - A1 Gold Star Limousine - $142,911.00
Supplier Spend Graph Before Normalization
- 38% - BP Australia LtD(PT Headland)
- 15% - MC Master Carr Supply Co
- 12% - Mcmaster Carr
- 08% - Napa Auto Parts TruSSV
- 06% - Napa Auto Parts
- 05% - BP Australia PTY Ltd
- 04% - Napa Auto Parts Clanto
- 04% - BP Australia P/L
- 03% - Caltex Aust Petroleum P/L
- 02% - Napa Auto Parts-Abbevi
- 02% - Motion Industries
- 01% - Caltex Australia Petroleum P/L
- 38% - BP Australia LtD(PT Headland)
- 15% - MC Master Carr Supply Co
- 12% - Mcmaster Carr
- 08% - Napa Auto Parts TruSSV
- 06% - Napa Auto Parts
- 05% - BP Australia PTY Ltd
- 04% - Napa Auto Parts Clanto
- 04% - BP Australia P/L
- 03% - Caltex Aust Petroleum P/L
- 02% - Napa Auto Parts-Abbevi
- 02% - Motion Industries
- 01% - Caltex Australia Petroleum P/L
Supplier Spend Graph After Normalization
- 48% - BP Australia PTY LTD
- 27% - MC Master Carr Supply Company
- 19% - Napa Auto Parts
- 04% - Caltex Australia Petroleum PTY LTD
- 02% - Motion Industries
- 48% - BP Australia PTY LTD
- 27% - MC Master Carr Supply Company
- 19% - Napa Auto Parts
- 04% - Caltex Australia Petroleum PTY LTD
- 02% - Motion Industries
Category Spend Graph with Poor Categorization
- 59% - 27112845 - Drill bitset, - $96,199.00
- 31% - 31161500 - Screws - $51,5666.00
- 10% - 27111700 - Wrenches and Drivers - $15,925.00
- 59% - 27112845 - Drill bitset, - $96,199.00
- 31% - 31161500 - Screws - $51,5666.00
- 10% - 27111700 - Wrenches and Drivers - $15,925.00
Category Spend Graph with Accurate Categorization
- 55% - 42151617 - Dental drillsor drillbits - $89,354.00
- 12% - 31161518 - Socket screw - $20,500.00
- 12% - 27111701 - Screwdrivers - $19,481.00
- 10% - 42321610 - Spinalscrew - $16,400.00
- 07% - 31161500 - Screws - $11,110.00
- 04% - 27112845 - Drill bitset - $6845.00
- 55% - 42151617 - Dental drillsor drillbits - $89,354.00
- 12% - 31161518 - Socket screw - $20,500.00
- 12% - 27111701 - Screwdrivers - $19,481.00
- 10% - 42321610 - Spinalscrew - $16,400.00
- 07% - 31161500 - Screws - $11,110.00
- 04% - 27112845 - Drill bitset - $6845.00