Spend Data Management
Strategy sourcing, negotiation ability, categorization of data and procurement are the main core factors for the success of the supply chain management of any organization. Supply chain management of any organization largely depends on the access, organize and analysis of the spend data. Spend data management is also essential for the key business activities like budgeting and planning, inventory management and product development.
Managing the spending data for any supply chain management organization is very crucial as it gives various benefits like
• Access the accurate spending on the timely basis and compliance data helping senior executives to take best decisions.
• Accurate spend data also helps to other business divisions like inventory management, budgeting, planning, product management.
• Master data management through data cleansing, data classification and data mapping process the transparency of the data increases ultimately provide crystal clear picture of spending on which product and how much.
Major challenges in Spend Data Management
Despite the high importance of the data management in supply chain management, still organizations are not having better system for their master data management. The reasons are
• Multiple data source: Spending data comes from the various sources like accounts payable, general ledger, purchasing system, enterprise resource planning, automated clearing house. Collecting data from the multiple sources has been time consuming process.
• Poor Data quality: The data collected from the enterprise resource planning system is of poor quality. This data is full of error and missing critical data fields like supplier name, product attribute etc. such errors corrected by the data classification and data attribution services
• Wrong vendor names: Within given enterprise, same vendor called by different names like Hewlett Packard, HP, HP Inc etc. Even organization doing business without their knowledge with different division of the same company. Sometimes organization is having contract with the main company still they buy the product from supplier or distributors. Such error interferes with the true spending pattern and decreasing negotiation leverage. Such errors can be eliminated through better data sourcing. So Spend Data management also called as Spend Analysis is the process of collection of data, classifying them as per standard classification systems (UNSPSC, NAICS, SIC) and leveraging the spend data for improving operational performance, reduction of the cost, increased visibility and compliance. Find servic es of Supply Data Management in India, Supply Chain Management in India, Spend Data Management in India from Data Management company in India. Contact us at +91 989 877 8929 or email us at hello@sanvill.com.
