Collect, cleanse, classifyYour category taxonomyFree sample classified

A spend picture you can actually rely on

Data collected, cleansed and classified by a named team in India and the Middle East.

Analysts working through spend data on screen
About the service

What is spend analysis?

Collecting your spend data from every system that holds it, cleaning it, classifying every transaction to a category structure, and turning the result into something you can act on. It is the work that has to happen before anyone can tell you where the savings are.

A word about evidence first, because this category deserves it. Nearly every spend analysis page you will read quotes a savings percentage. We could not find independent research behind any of them. The most recent public benchmarking we could trace on spend visibility is Ardent Partners work from 2017, and the vendor claims published since then are self-reported. So we are not going to tell you what percentage you will save. Anyone who does, before seeing your data, is guessing with confidence.

What we will not promise

A savings percentage before we have seen your data. We will tell you what proportion of your spend we could classify, how much sits with suppliers you have no contract with, and where the addressable opportunities are. What you recover from that depends on decisions you make afterwards, not on us.

What those 2017 figures did show is worth understanding, because it is counter-intuitive. Best-in-Class organisations reported annual savings of 6.3 percent against 6.1 percent for everyone else, which is barely a difference. The gap was not in how well they negotiated. It was in how much spend they could actually reach: 56 percent under management against 39 percent, and 44 percent more of addressable spend actually sourced. Visibility does not make you better at saving. It makes more of your spend available to save on.

The work itself is unglamorous and mostly about data quality. Transactions arrive from your ERP, your card programme and your accounts payable system in different shapes, with supplier names spelled four ways, and a general ledger code that tells you it was an expense but not what was bought. Somebody has to reconcile that into one picture and classify it consistently. Doing that once is a project. Doing it every quarter so the picture stays current is a service.

Coverage

Where we deliver

The regions we sell into, and the rules that govern each engagement.

  • Australia and New Zealand

    Our day overlaps ANZ mornings. Australian Privacy Principles govern cross border handling of transaction data.

  • Canada

    PIPEDA, and Law 25 in Quebec. Bilingual EN/FR supplier name normalisation where needed.

  • United Kingdom

    UK GDPR, with an IDTA covering transfers to India.

  • GCC, UAE and Saudi Arabia

    Our Middle East team gives local hours cover. Arabic supplier name handling, VAT treatment and data residency in the DPA.

  • United States

    Committed overlap hours in the contract, not best efforts. SOC 2 Type II is on our certification roadmap.

  • Europe

    GDPR first, with multi-currency and multi-language supplier normalisation. Strongest fit today in the Netherlands, the Nordics and Ireland.

What the team actually does

Five areas of work, handled end to end by the analysts assigned to your account.

Spend data being pulled from multiple source systems
Collect the data

Every source that holds spend, pulled together into one reconciled set: ERP, card programmes and accounts payable.

ERP and AP extracts
Corporate card data
Multiple entities reconciled
Any format accepted
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Messy supplier data being cleansed and normalised
Cleanse and normalise

The slow part. Four spellings of the same supplier become one, and parent companies get linked to their subsidiaries.

Supplier names normalised
Parent and child linked
Duplicates removed
Currencies standardised
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Transactions being classified to a category taxonomy
Classify to your taxonomy

Every transaction placed in a category structure you approved, whether that is UNSPSC, your own, or a hybrid of both.

UNSPSC or your structure
Agreed before we start
Judgement calls flagged
Unclassified reported openly
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Spend reporting dashboard being reviewed
Report what it shows

Spend by category, supplier and business unit, with the concentration and contract coverage that follows from it.

Category and supplier views
Contract coverage measured
Supplier concentration
Off-contract spend surfaced
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Analyst identifying an addressable opportunity in a spend report
Keep it current

A refresh on your chosen cycle, so the picture does not go stale the month after you paid for it.

Quarterly or monthly refresh
New suppliers classified
Trends against baseline
Structure kept consistent
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What we need from you

Four things. A finance analyst can usually produce them in under an hour.

Transaction data extract prepared for free sample classification
Send a sample

Twelve months of transaction data, so we can classify a slice of it free and show you the accuracy.

Twelve months of transactions
Supplier master extract
Card and AP data
Contract list, if you have one
Finance lead named as single point of contact
Name one owner

One person on your side who can approve the category structure before we classify anything.

A single point of contact
Approves the taxonomy
Resolves judgement calls
Joins the review session
Read only reporting access being provisioned
Provision access

Read access to your reporting, or a scheduled extract. We do not need write access to anything.

Read only is enough
Named users only
Or a scheduled extract
Revoked by you, any time
Category taxonomy agreed before classification starts
Agree the taxonomy

The category structure, how deep it goes and who resolves the edge cases, agreed once before classification starts.

Category structure
How many levels deep
Who resolves edge cases
Agreed before we start
How engagement starts

How we get you a picture you can trust

We classify a sample of your real data free of charge first, so you can judge the accuracy before paying for anything.

Free sample classification

Send us a slice of your transaction data. We classify it, show you our working, and tell you honestly what proportion we could categorise with confidence and what needed a judgement call.

Real data, not a demo dataset
Accuracy shown line by line
Written baseline report, yours to keep
Fixed fee first pass

The full analysis: data collected from every source, cleansed, supplier names normalised, everything classified to a taxonomy you approved, with the opportunity assessment that comes out of it.

All spend sources reconciled
Taxonomy agreed before we start
Unclassified spend reported, not hidden
Keep it current

A refresh on the cycle you choose, so the picture does not go stale the month after you paid for it. New suppliers and new categories get classified as they appear.

Quarterly or monthly refresh
New suppliers classified on arrival
Trend reporting against the baseline
Comparison

Do it yourself, Procuriva, or buy a spend tool

The three routes to a spend picture. If you have clean data and an analyst with time, do it yourself. That is genuinely cheaper and we will say so.

Your own team
ProcurivaOur model
Spend analytics software
What you are buying
Nothing, it is your time
The analyst work, on your data
A tool that needs feeding
Who cleanses the data
Your analyst
We do
You do, before it is useful
Who classifies transactions
Your analyst, usually in Excel
We do, to your taxonomy
Auto-classified, you fix the rest
Handles messy supplier names
Manually, and it is the slow part
Normalised as standard
Partially, the tail stays messy
Stays current
Until your analyst is busy
On an agreed refresh cycle
If someone reloads the data
Cost model
Absorbed, and usually underestimated
Per refresh, or a monthly seat
Annual licence plus implementation
Time to a first picture
Weeks of someone's evenings
Weeks, on a fixed fee
Implementation, then ongoing effort
Tells you what it could not classify
You will know
Reported explicitly
Often buried in an 'other' bucket
Best fit
Clean data, one entity, spare analyst
Messy data across systems and no spare analyst
You want a permanent dashboard and have staff to run it

Frequently asked questions

The questions procurement and finance teams ask before a spend analysis engagement starts.

What is spend analysis?

Collecting spend data from every system that holds it, cleansing it, classifying each transaction to a category structure, and reporting the result so you can see what you buy, from whom, and under what contracts.

What is a spend cube?

The three-way view most spend analysis produces: spend by category, by supplier and by business unit or cost centre. It is called a cube because you can look at any one dimension while holding the others, which is how opportunities become visible.

How much will spend analysis save us?

We will not give you a percentage before seeing your data, and we would be sceptical of anyone who does. Independent benchmarking in this category is remarkably thin, and the confident savings figures on most vendor pages are self-reported. What we will tell you after the first pass is how much of your spend is addressable and where it sits.

Does better spend visibility actually increase savings?

Not in the way most people assume. Ardent Partners' benchmarking, which dates from 2017 and is the most recent independent work we could trace, found Best-in-Class organisations saving 6.3 percent against 6.1 percent for others. Almost identical rates. The real gap was reach: 56 percent of spend under management against 39 percent. Visibility does not make you a better negotiator, it gives you more spend to negotiate on.

What is UNSPSC classification?

A standard hierarchical code set for products and services, widely used because it is common ground between systems. It works well for standard categories and less well for anything specific to your industry, which is why many organisations use a hybrid of UNSPSC and their own structure.

Should we use UNSPSC or our own taxonomy?

Use your own if your categories map to how you actually organise sourcing, which is usually the case. Use UNSPSC where you need to compare against external data or share a structure with a partner. Most engagements end up hybrid, and we agree the structure with you before classifying anything.

How accurate is the classification?

We show you before you commit. The free sample uses your real data and reports what proportion we classified confidently, what needed a judgement call and what we could not place. There is no published independent benchmark for classification accuracy in this category, so a vendor accuracy claim is not something you can verify. A sample is.

What happens to spend you cannot classify?

It gets reported as unclassified, with the reasons. It does not get quietly swept into an 'other' bucket to make the percentage look better. Unclassifiable spend is usually a data quality problem worth knowing about in itself.

How long does a first analysis take?

Typically a few weeks, depending on how many source systems are involved and how much supplier name normalisation the data needs. The free sample gives you a realistic timeline before you commit, because data quality varies enormously.

How often should spend analysis be refreshed?

Quarterly suits most mid-market organisations. Annual is common and usually too slow, because the picture is already six months old by the time anyone acts on it. There is no independent benchmark on refresh frequency, so treat any specific claim about it with caution.

Do we need a spend analytics tool as well?

Only if you want a permanent live dashboard and have someone to keep feeding it. A tool automates classification but leaves you the cleansing, the tail of messy supplier names and the exceptions. If you just need a reliable picture on a cycle, the analyst work matters more than the software.

Which systems can you pull data from?

SAP, Oracle, NetSuite, Microsoft Dynamics, Coupa, Sage, Xero, QuickBooks and Tally, plus corporate card statements and AP extracts. Format is rarely the obstacle. Data quality is.

What do you need from us to start?

Twelve months of transaction data, a supplier master extract, and your contract list if you have one. That is enough for the free sample, and it usually takes a finance analyst under an hour to produce.

Is it safe to send our spend data offshore?

Access is scoped by you, granted to named people, and revoked through your own leaver process. We contract on standard clauses, name every sub-processor, and work to GDPR, UK GDPR, PIPEDA, the Australian Privacy Principles and Saudi PDPL. ISO 27001 alignment is in progress and SOC 2 Type II is on the roadmap. We state status honestly rather than showing badges we do not hold.

What comes after the analysis?

Usually one of three things: consolidating suppliers where the same category is bought in several places, bringing off-contract spend onto contract, or running a sourcing exercise on a category the analysis surfaced. The analysis is the map, not the journey.

Can we start with one entity or one category?

Yes, and it is often the fastest way to prove value. One entity, one region or one category, classified properly, tells you whether the wider exercise is worth doing.

See our accuracy on your own data. Free.

Send a slice of real data. We classify it and show our working, either way.