Accurate Spend Categorization

In order to make the most of their spend visibility, companies need it to be both accurate and granular. By accurate, we mean that each dollar, euro, yen, etc. of spend is assigned to the correct item in your chosen taxonomy, be it UNSPSC, eClass, proprietary, or another taxonomy. By granular, we mean that each transaction is categorized to the lowest level of detail possible. Being more granular can mean the difference between knowing what you’ve spent on “Information Technology” (common level 1) vs. “Notebook Computers” (common level 4).

How granular do you want your spend visibility to be? Emptoris customers achieve deep granularity enabling their sourcing and finance professionals to make more informed business decisions.

Taxonomy Granularity

To achieve accurate and granular categorization, companies need robust data enrichment and classification software. And, Emptoris delivers. The Emptoris difference includes:

• Multiple auto-classification algorithms to classify all types of spend
  • Bayesian
  • Natural language processing
  • Nearest neighbor
• Continuous improvement through closed-loop feedback mechanisms and learning
  • Feedback driven rules
  • Machine learning
• Taxonomy independant categorization to support your business needs
  • UNSPSC
  • eClass
  • eOTD
  • Proprietary taxonomies
• Automatic web crawling to integrate external information from, for example, supplier catalogs
• Vendor knowledge base
• Item knowledge base, based on UNSPSC
• Domain & category expertise

Learn how the Spend Data Manager empower customers to achieve accurate and granular spend visibility.

$40 Million Saved In Year 1
	A chemical company with one global instance of SAP business data warehouse thought their spend data was “beyond repair.” They needed to turn it into useful information to meet aggressive savings targets. They turned to Emptoris Spend Analysis to improve the quality of the information in their data warehouse. They accurately and granularly classified 95% of their spend and saved $40 million in the first year alone. They analyzed $6.4 billion that included:
3.7 million transactions 33 currencies 25,000 vendors records 42,000 material master items

Learn More:

Register for the live Purchasing Magazine webcast: Building a Business Case for a Spend Analysis System at Your Company – June 27th, 2:00PM Eastern (11:00AM Pacific) – Hear insights from Mitch Plaat, Vice President of Procurement at Con-way Inc. and Paul Teague, Editor-in-Chief of Purchasing Magazine on how to get a new spend analysis initiative funded.

Numerous other customers have achieved comparable success. Contact us to learn more about how companies have saved millions with Emptoris Spend Analysis.

Download the whitepaper Achieving Spend Visibility: Benefits, Barriers, and Best Practices - Learn how companies are achieving substantial bottom-line savings through a more complete and accurate view of their enterprise-wide spending.