Spending with external suppliers is the single greatest expense for most enterprises. Supplier relationships also directly impact an enterprise’s product quality and overall responsiveness and competitiveness in the market. However, the success of any supply management strategy is largely dependent on the ability to access, organize, and analyze spend data. Spend data is the foundation for effective supply management decisions. Hence the need for an effective Spend management practice.

It is increasing observed that spend management practiced in organizations are not able to yield expected results. The reasons for this are many. Most of the times it boils down to data management issues. Unfortunately, few enterprises are effectively controlling their spend data. At most companies, spend data resides in multiple, disparate systems and is not classified to a level of detail that is useful for analysis.

Problems with Spend data management

• Spend data coming from disparate silos: Spend data is generated in different types of transactional systems like AP, GL, ERP, MRP, Inventory, P-cards etc. These seldom resemble each other in structure or capture.
• Incomplete and unreliable information: Missing of data in key fields, like descriptions, pricing, UOMs are common issues
• Non-standardization of naming conventions: Same Vendor, but named differently multiple times. Same part number in multiple conventions are atypical.
• No structured classification to a commodity level: What about the "data about data"? What does this data mean afterall? No easy way to tell this.
• Lack of Analytical capability: Limited view of spend due to instinctive decisions. Excel is the primary analytics tool.

How Grihasoft can help?

As seen above, data management issues ARE the biggest hurdle on the way of achieving effective Spend management. Griha’s strength is its data management capability. Grihasoft can assist as a partner for enterprises in their spend management program, to handle the data issues.