Identify sources.Question: Where do I get the data from? Depending on your spend analysis goals, the data you need will likely reside in more than one system, some within and some outside of the organization. The main source for your data is your accounting system which usually contains data relating to:
The Spendata Data Extraction Guide contains a description of typical procurement data available to companies and provides guidance on constructing a data request document that you can pass on to the individuals or departments concerned.Cleanse data. The Spendata data loading process walks you through loading the data, and through a review process to assure basic data quality. During this process the application calculates control totals, identifies issues with the data, and ask questions to resolve common ambiguities such as:
Knowing what you spend with a single supplier is important for many reasons and is critical for negotiating, so the first task is to consolidate all the spend data for each key supplier. Since your data file contains purchasing data and vendor data, consolidation should be a simple process of rolling up the spending by vendor name, however, it rarely is. The problem analysts come across is that the spend is scattered among many different variants of a supplier name so any roll-up of spending is inaccurate, to say the least. Removing variations in vendor names and grouping together spend under a single name is a process we call "familying."A typical example of the same vendor being listed twice is highlighted in the table below. Imagine the number of different ways this vendor's name has appeared!
|Supplier||TID||Website||Pay Terms||Contact||Address||Phone||Credit Limit|
|Dunder Mifflin Corp||234661||www.dundermifflin.com||45 days||S.Hudson||Scranton,PAfirstname.lastname@example.org|
|Stark Industries||7826473||www.starkindustries.com||45 days||Tom Stark||New Rochelle, NYemail@example.com|
|Wayne Shipping||4731121||www.wayneenterprises.com||15 days||B. Wayne||Gotham City, NYfirstname.lastname@example.org|
|825473||www.ibm.com/ibm/us/en||30 days||Arthur Foxe||New Rochelle, NYemail@example.com|
|IBM||825490||www.ibm.com/ibm/us/en||30 days||Jeff Heath||Armonk, NYfirstname.lastname@example.org|
When you family vendors, you create a rule that says: whenever these supplier names appear in the vendor master file, family them under "IBM".