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Which of the following do you see as the potential outcomes of leveraging Spend Analytics in your organization?

Annie VaseekaranCreated by Annie Vaseekaran on Sep 23, 2015 in Spend Analysis

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Whether you use your own Custom Category or the out-of-box UNSPSC provided in Spend Visibility, it's important to keep the foundational Ariba Classification Taxonomy (ACT) up-to-date.  The latest version, ACT 9.5, incorporates over 30,000 new codes from both customer-specific requests and UNSPSC 15.11.01.  New codes have been added to all segments with an emphasis on:


  • Food Products
  • Live Plant and Animal Material
  • Manufacturing Components
  • Distribution and Conditioning Systems
  • Structures, Building, Construction & Manufacturing Components


Which ACT version do you have?  If you are not sure which version you have, simply ask your Spend Visibility Project Manager.  If you are on ACT 9.5, your UNSPSC dimension will contain over 58,000 codes.  If you are on the previous ACT 9.4, the dimension will contain over 24,000 codes.


How can you get ACT 9.5?  New customers as of Q4 2015, are automatically on ACT 9.5, however, existing customers will require an upgrade.  Your Spend Visibility Project Manager will orchestrate the upgrade, usually during a refresh.  Please work with your Spend Visibility Project Manager to make sure you have the latest version applied to your realm by Q2 2016.


Will any spend be impacted by the upgrade?  Roughly 3% of the ACT 9.4 codes have changed.  Depending on which codes were actively used to categorize your spend, you may see different descriptions, level changes, and/or merged spend.  The majority of changes relate to minor description changes.  For example, the 9.4 description for "7178 alloy" has changed to "Aluminum alloy 7178" in 9.5.  A few codes moved up or down a level in the hierarchy, and in some cases, they were merged.  For example, "Processed Peaches" and "Preserved Peaches" in 9.4 were merged to "Canned or jarred peaches" in 9.5.  As part of the upgrade process, your Project Manager can create a spend impact report comparing spend in both ACT 9.5 and ACT 9.4 categories.


Why is it important to be up-to-date?  Taxonomies evolve over time.  By staying current, you will avail yourself to the latest categories and additional levels of granularity as they are influenced by customers and standards councils.


Does this have any impact on the out-of-box UNSPSC in Spend Visibility?  No.  The out-of-box UNSPSC delivered with Spend Visibility will remain the same.

One of the ways you can drive sustainable value is to participate in the Spend Visibility Benchmarking program.  Regular benchmarking can help you make effective purchasing decisions by comparing key metrics on your commodity, supplier and usage data with peers.


You can gain valuable insight into your performance, and more importantly, discover what levels of performance are possible based on your peers.  Starting Q3 2015, annual Spend Visibility Benchmarking cycles will enable you to consistently measure progress towards the targets you set for your organization.  Reports cover twelve months of spend data and are presented in an easy-to-consume format so that you can benchmark your organization against industry peers and overall benchmarking peers.  Reports include:


  • Spend profile comparisons by major categories including direct, indirect, services, and travel
  • Top 10 commodity comparisons by spend and supplier counts
  • KPI comparisons including such metrics as:
    • Total Annual Invoice pend as a percentage of Sales/Revenue
    • Average Annual Invoice Spend per Supplier
    • Average Annual Invoice Spend of Top 5 Suppliers
    • Average Spend per Invoice
    • Percent of Total Spend on PO
    • Percent of Total Spend on PCard
    • and many other KPIs


To learn how you compare against your peers, click http://ariba.sap-epublisher.com/#7053af0e08b3f7d59291a36ab1ff3576/page/1 to enroll. 

Shortly after enrollment, you will be contacted by the Benchmarking team to get you started.  If you have any questions, please contact CloudBenchmarking@sap.com.

2013 - Analyzing Spend: You Can't Fight What You Can't See  Here


2014 - Spend Analysis: Let Your Numbers Do the Talking  Here


2015 - Spend Analysis: Its what you do with it that matters  Here

Do you want to measure and compare adoption with peers?

Looking to identify improvement opportunities?

And want to increase peer visibility into top commodity categories and supplier metrics?


If yes! Then you got to participate in the Ariba Spend Visibility Benchmarking Program.


The Ariba Spend Visibility (SV) benchmarking program provides you with comparative insights on key metrics for your commodity, supplier and usage data.  It allows you  to gauge your  own spend profile as well as adoption of the Ariba Spend Visibility  solution relative to other clients and identify areas for improvement.

The program features comprehensive spend coverage (Direct & Supply Chain, In-Direct and MRO, Contingent Labor and Services, Travel and Expense), Strategic insights, Top 10 commodity summary, supplier consolidation and comprehensive customer scorecards.


To indicate your intent to participate




Upon enrollment, the Benchmarking team will contact and welcome you to the program.

Ariba Spend Visibility offers an optional data extraction service for customers with SAP ECC source systems. The service includes development and ongoing maintenance of customer specific extraction scripts. This enables customers to seamlessly extract and transform spend data from SAP ECC source systems thus expediting  Spend Visibility deployments and ongoing refreshes.


The process include just  5 steps


Step 1:Customer Data Mapping


Step 2: Script Building and Quality Assurance


Step 3: User Acceptance testing


Step 4: Deployment


Step 5 : Maintenance and Support


To reap benefits such as:


•Minimized effort to extract data from SAP ECC source systems

•Reduced data extraction timelines

•Hands-on support for data, configuration and transfer issues

•Flexibility to modify data extraction files based on changes required during the term of the subscription




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