One of Ariba’s current SV customers, is undergoing a refinement classification process for their Financial Services and Insurance based spend, most recently Underwriting spend as well, and will be more than likely utilizing a custom category. In short, they’d like to have more granularity for those specific spend buckets and have asked whether we have customers who faced similar situation. I was informed there are customers using custom categories for financial services and insurance, but they didn’t require it to be more granular than L1 or L2 where applicable. Are there any other clients that needed the same or similar granularity classification such as L3 and/or L4? Any feedback from the community will be greatly appreciated.
Confine periodic spend analysis activity to about 50 - 60 categories. Categorizing indirect spend at a more granular level than that becomes increasingly more time consuming and less useful at the portfolio level. Do more detailed analysis of line-item level spending in the context of an active sourcing effort for a particular category.