Data Classification

What is Supplier Normalization?

Posted: 05/09/2022 - 00:00
Keeping your supplier information data up to date and accurate is essential to making informed business decisions.

Supplier normalization can also be referred to as standardization. Normalization is giving your existing suppliers a common name or grouping so that you can see how much you are truly spending with them or selling to them. 

Sounds silly though, right? 

Surely companies must know how much they are spending, selling or using with their suppliers already? You might think that, but there are a number of reasons that you might find multiple versions of the same supplier in a database.

Make Classifying Your Spend Data a Top Priority in 2022

Posted: 03/18/2022 - 09:00
Classifying spend data can often seem like a huge and overwhelming task, but you shouldn't push it down on the priority list.

Classifying spend data can often seem like a huge and overwhelming task, especially if you’re starting from scratch and, more often than not, it’s a task that gets pushed further and further down the priority list.

You may even already be thinking about it, or can’t justify the time or resources, or it might be something that you think is just a complete waste of time. But I’m here to tell you why you need to make it your top data priority in 2022!

Procurement’s Dirty Little Secrets

Posted: 02/25/2022 - 09:00
Exposed: Six of procurement's dirty little secrets that are hindering its ability to be a truly strategic partnership to the business.

It’s an exciting time to be working in procurement and ProcureTech as they are both undergoing an exciting transformation.

Venture capital funds are flooding into ProcureTech, and the category has a forecasted CAGR of 10.2% between 2021–2026 (Global Industry Analyst, Inc 2021) at a $9.9BN valuation by 2023 (Banerjee 2019). At the same time, Global 2000 Corporations are increasingly open to adopting new emerging technologies.

All signs point toward transformation.

But, first, we need to address the elephants in the room.

They Did What?! Data Horror Stories Revealed

Posted: 10/25/2021 - 00:00
They Did What?! Data Horror Stories Revealed

We all like a good horror story, especially a data one. It’s like when you pass an accident on the road, you can’t help but slow down to have look, and then you’re thankful it wasn’t you.

Data horror stories are just like that. It gives us comfort to know that we are not the only ones suffering and that there might be people in even worse situations out there. We’re not just going to slow down here though; we’re also going to stop and see what went wrong. That way we can avoid finding ourselves in these situations in the future.

What is a Taxonomy, and Should I be Using One?

Posted: 08/04/2021 - 09:00
What is a Taxonomy, and Should I be Using One?

It surprised me when I first came into the procurement world that not everybody knew what a taxonomy was, I even had someone confuse it with taxidermy! I thought it was used in all procurement departments all over the world, but I was wrong. In fact, it is often overlooked, which can be frustrating as it’s an incredibly useful tool for data organization.

What is Tail Spend?

Posted: 06/10/2021 - 09:00
What is Tail Spend?

Just like in spend data classification, the definition of tail spend is subjective. Some organisations classify tail spend at the bottom 20% of spend, while others might set a financial level such as £100,000 or £1 million.

According to CIPS, tail spend “can often be referred to as rogue spend or maverick spend, is usually small value purchases that are conducted by the organisations outside of a contract and often outside of the awareness of the procurement team.”

Make Putting a COAT on Your Data a Top Priority

Posted: 03/30/2021 - 09:00
Keeping your data clean means greater visibility across your business in several areas, allowing better decisions, as well as time and cost savings and increased profits.

Can you imagine standing in the middle of a snow blizzard without a COAT on? No… me either. It doesn’t sound like a particularly fun way to spend an evening and let’s face it, no one wants to be exposed to the elements. But guess what? Your data is the same. Think about all the consequences for your health if you were to be stuck out in freezing, stormy weather without a layer of protection on: snotty nose, shivering or, even worse, hypothermia and frostbite.

No, It’s Not Enough to Just Use GL Codes to Classify Your Spend Data—Here’s Why

Posted: 11/25/2020 - 02:46
Finance departments use GL codes to track spend.

Finance departments use GL codes to track spend. We’re looking at items like office supplies, marketing or maybe a specific project within the business. However, what finance are looking for and what procurement are looking for can be two quite different things.

The Trouble With GL Codes

Firstly, if you're only using your general ledger codes, I can almost guarantee they are wrong! In my experience working with GL codes, I would say 90% of them are unreliable. You'll almost always find something classified under a GL that shouldn't be there.

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