Next Generation Spend Analytics & Data Visualization

Strategies to Move the Needle from Tactical to Strategic

Jake WojcikSenior Vice President

Age-Old Question

Why is Spend Visibility Hard to Achieve?

1. Multiple systems / fragmented data

2. Maverick and unmanaged spend

3. Categorization that IS NOT procurement focused

4. Poor data input discipline

4 Challenges of Spend Visibility

Order Placement

• Limited or out of date catalogs

• No POs for some spend• Incomplete entry

by buyers• Manual edits by buyers or

entry clerks

Supplier Invoice

• Vague product descriptions• Lack of detail such as UOM• Supplier-specific item

numbers

Invoice Entry &

Payment

• Entry errors, scan errors• Redundant vendor IDs for

the same supplier• Accounting-driven

GL coding• Incomplete or no detail

entered

**The quality of data varies widely by supplier and category.

Data Supply Chain Failure Points

The History of Spend Analytics

Spend Analytics 1.0 -- 1980s to 1990s

What created 1.0?• Rise of modern Strategic Sourcing techniques & computerized business processes• Suddenly, procurement professionals had a lot of data

Examples of 1.0 solutions:• VisiCalc, Lotus 1-2-3, Microsoft Excel

Why didn’t 1.0 solutions work?• Spend analysis was an arduous process• Time consuming, expensive, and difficult to repeat

Spend Analytics 2.0 -- 1990s to 2010s

What created 2.0?• Strategic Sourcing seeping from the Fortune 500 into the next layer of companies• Technology companies going through a revolution of their own

Examples of 2.0 solutions:• ERP systems, P2P systems

Why didn’t 2.0 solutions work?• Overreliance on technology; no human element• Solutions built by software executives; not procurement

• Categorization is often inaccurate

• Categories do not map to the supply market

• Off-shore vendor categorization teams do not understand the local market

• Data often requires additional manipulation before it is usable

• Tools for spend visibility are often: Clunky Don’t highlight the insights procurement pros need Spreadsheets

Why do 2.0 solutions fail?

What should Spend Analytics 3.0look like?

Spend Analytics 3.0

In our view, the Spend Analytics 3.0 world would look like this:

Intelligent Automation

ExpertManual

Intervention

Injection ofStrategicSourcing

Elegant,Easy-to-Use

Interface

Spend Data Optimization

SpendHQ is a spend analysis software that provides rapid, accurate and detailed visibility into your spend data. This full-service SaaS (Software-as-a-Service) spend visibility solution delivers actionable insight for sourcing and procurement professionals.

Spend Visibility & Compliance Management

Category Management

Contract Visibility

SpendHQ provides spend visibility & advanced analytics for leading organizations in excess of $325B in spend annually

Select Private Equity & Holding Company Clients

Manufacturing & Industrial

Retail & Consumer Brands

Financial & BusinessServices

Life Sciences & Healthcare

Information Tech & Media

Questions?

Jake Wojcik Senior Vice President

Insight Sourcing Group & SpendHQjwojcik@insightsourcing.com