Services : Spend Analysis

About Arkedge Technologies

Spend Analysis

Spend data management has emerged as a lead strategy that enterprises will use to drive continuous improvements in supply chain management. Despite the immense value that well managed spend has been proven to deliver, very few organizations have a structured methodology for analyzing spend data and using it as an effective decision support tool.

Most companies have multiple enterprise transaction systems and lack the tools and processes to properly aggregate, cleanse, normalize and monitor their spend with multiple vendors at the line item level.

Though some companies have analytical abilities built into enterprise software systems, they fail to generate the intelligence that is sought by executive management due to tools being limited in their intelligence, as compared to an actual Analyst.

The services assist customers in getting insights on their direct and indirect spending, monitor the performance of suppliers and identify opportunities to consolidate spending or reduce costs of procurement.

Spend Analysis

Arkedge offers a solution that helps clients attain full visibility into their spend; better understanding where savings opportunities exist, and how to achieve the best savings.

Arkedge eSpend Solution

Arkedge's spend analysis solution provides a total solution to companies that are looking to consolidate spend data from multiple systems, transform data quality and analyze transactions, to provide actionable results. Our spend analysis offering combines our commodity expertise with automated technology and provides a comprehensive view of your organization's spend. This "bottom-up" approach includes:

Requirement review and finalization
  • Review / Understand the Client Business and Project Scope.
  • Identification of spends data sources & attributes (Internal & External Sources).
  • Assessment for completeness of data from multiple Sources.
  • Review of additional Information - Frequency, Exchange rates, languages, Profit Centers / Business units Information etc.
  • Finalize data file templates, taxonomy / schema for classification.
  • Review any client / industry specific classification needs / guidelines.
  • Setup of the client domain in the tool with client specific information

Data Collection and Consolidation
  • Collect spend data (raw data) from various systems & sources. Coordinate discussions (if necessary) across time zones and languages
  • Review the completeness of data in terms of required fields, formats etc.
  • Work with client to setup semi-automated/automated data collection process
  • Create file based information summary for client review (spend numbers, records, currencies etc.)
  • File acceptance / rejection based on client feedback
  • Consolidate the data files from various templates to standard accepted template.
  • File upload into the tool for further data processing.

Data Cleansing, Normalization and Clustering
  • Review raw data files and transform data at attribute level if required.
  • Extract data from files and reconcile based on various data formats.
  • Normalize data for various attributes such as PC/BU, Company, date formats, etc.
  • Normalize currencies and perform currency conversion to normalize spend.
  • Cleanse the records from any noise (junk) characters for further processing.
  • Perform data validation for specific set of business rules.
  • Perform data clustering based on certain data attributes such as supplier name, GL description, material description, material / item group etc.

Classification, Enrichment and Review
  • Memory Lookup for classification of clusters on historic intelligence.
  • AI based engine for supplier / item normalization, classification, and establishing corporate linkage.
  • Generate classification result summary based on regions, business unit, top categories, suppliers and spend amounts for sourcing expert verification.
  • Conduct feedback sessions with sourcing experts to finalize the spend classification.
  • Classifying the data into sourceable categories using the UNSPSC

Advanced Data Analytics Reports
  • Review the standard analytics report formats (measures and dimensions) and identify need for additional cubes or dimensions.
  • Define the format of additional analytics reports and create the analytics reports based on the OLAP data cubes.
  • Review the analytics reports and provide access to reports for client feedback.
  • Based on client feedback, incorporate any changes so as to enrich the spend data with business specific rules / information.
  • Reporting the analysis and findings to the decision makers within your organization.
  • Finalize the spend analysis reports and publish the 'Spend Book'

Arkedge eSpend can accept data from various file type, i.e., Text, MS Excel, XML, MS Access etc. Our analyst's upload, review, accept, reject, validate, normalize, cleanse, cluster classify, and analyze the data through eSpend analysis tool.

Reports such as spend by business unit, geography, reporting period, category, vendor, UNSPSC code, language, price variance, etc. are available within the tool. A detailed opportunity assessment is also performed to provide insights to clients on where and how to achieve cost savings across their entire spend.


Benefits of Spend Analytics
  • Provides insights on direct and indirect spending and business strategies
  • Data quality improvement & Operational efficiency
  • Converts raw data into knowledge capital
  • Rationalize and standardize products and services
  • Shows company spend across categories, supplier etc
  • Identifies savings opportunities for procurement
  • Consolidate spend across various business units to increase leverage in supplier negotiation
  • Enables strategic sourcing that helps reduce cost and maximize profits
  • Provides actionable insights and recommendations, which impacts the bottom line
  • Obtain visibility into how much money is spent with whom, on what and how
    • Provides insights on direct and indirect spending and business strategies
    • Data quality improvement & Operational efficiency
    • Converts raw data into knowledge capital
    • Rationalize and standardize products and services
    • Shows company spend across categories, supplier etc
    • Identifies savings opportunities for procurement
    • Consolidate spend across various business units to increase leverage in supplier negotiation
    • Enables strategic sourcing that helps reduce cost and maximize profits
    • Provides actionable insights and recommendations, which impacts the bottom line
    • Obtain visibility into how much money is spent with whom, on what and how