1 Reply Latest reply on Mar 12, 2012 11:09 AM by Sean Harley

    Best practices for categorizing and tracking spend

    ab50527 Apprentice

      We’re evieiwing our proceses and methodology for electronically categorizing and tracking spend throughout the different business units for our Procurement team. I am interested to find out best practices in terms of methodology and threshold levels. Currently, we publish our data from various canned Ariba Reports, Spend Visiblity, and Inspector SQL queries. Often times, we find data discrepancies across these three data reporting mechanisms. We would like in the future to publish a couple of reports that hone in on the most important data elements that our internal customers are interested in.

       

      What are your thoughts on data reliability from these three data sources?

      What are the most important data elements do you think internal customers are most interested in seeing? 

       

      Additionally, I am looking to network with other companies to talk about recommended methodologies. If you are interested in speaking about this on the phone, please let me know in your response via e-mail.

        • Re: Best practices for categorizing and tracking spend
          Sean Harley Novice

          Internal customers will likely want to see data on purchase price variances for direct materials.  This should be broken down by spend category, supplier, and even specific SKU's above a certain threshold.  Indirect spend reports to internal customers should detail period over period changes in spend for categories, suppliers, and cost account.  Procurement users will tend to think in terms of spend categories and suppliers while other business users tend to think in terms of cost accounts because these are the elements of their budgets.   I would suggest interviewing a representative set of cross-functional users to get input on what they would like to see in the reports.  Then ask them to review mock-ups of the final reports and incorporate their changes before making them widely available.   Without being more familiar with your situation, I cannot speak to the data quality aspect of your question.  Good luck!  And feel free to contact me by phone at 646-705-3720.