Frequently asked questions: Spend analysis
According to which classification system (product group code, taxonomy) do you classify our data?
How long does the classification take?
The first run is completed after only a few weeks. Typically, 70% of all spending items are already correctly classified.
Standard analyses such as price variance or price trend already show action approaches in all cases known to us. Various customers have implemented first measures, while the classification model has been further refined.
How reliable is the classification?
By customizing the data model, our spend analysis achieves an accuracy of 90% and more.
What input data does source:net process?
The incompletely classified data, reports, etc. come from various enterprise resource planning systems, catalog ordering systems, P-Card reports, etc.
In the case of a global automotive group, information from over 60 ERP systems was consolidated and classified.
Do you process languages other than German or English?
We have classified output data in over 20 languages.
In the case of a customer from Norway, information was consolidated and classified in 14 different languages.
How can the classified data be further processed and evaluated?
Classified data can, for example, be transferred to SAP Business Warehouse and analyzed there. Other reporting systems that we have supplied with detailed analysis data include those from Ariba, Oracle, Hyperion, and Business Objects.
How can we integrate automated spend analysis into our business processes?
We offer our customers either a one-time analysis of their spending data or a regular update. Typical update cycles range from semi-annual to monthly. But there are also weekly and even daily refreshes.
What are the costs of spend analysis?
Effort and costs depend on
- the purchasing volume (in EUR million)
- the language distribution (which languages? how distributed?)
- the updating cycle (semi-annually to weekly)
We will be happy to provide you with an individual offer.