Thursday, August 16, 2012

WAND Spend Classification

With decades of experience in creating taxonomies and classifying information, WAND has recently turned our attention to spend analysis with some exciting results.

We've partnered with a few of the leading spend management and strategic sourcing consulting firms to classify billions of spend into specific WAND Product and Service Taxonomy categories.  The output is then delivered back to our spend consultant partners who present the complete analysis back to clients. 

The WAND Product and Service Taxonomy, which we've developed over the last 20 years, allows us to do an efficient and highly accurate spend classificaiton process with an output that is clear and easy to present to the customer. It is a true competitive advantage to the process.  Further, compared to UNSPSC, which can sometimes be confusing, the WAND Taxonomy categories are easy to understand and the spend analysis can be clearly presented to the client. (If data needs to be classified to UNSPSC, we can always map our categories over, providing an extra degree of flexibility).

WAND's process classifies and normalizes spend line item descriptions as well as vendors.

Spend classification is a key initial step to any strategic sourcing or spend managmenet project because it provides an initial baseline and visibility of how a company is spending its money now and helps identify opportunities to save money.   An accurate spend analysis provides a strong foundation to truly get spend under control. 

WAND has completed several large spend classification projects including for a major auto manufacturer, a national fast casual chain, and also for a customer analyzing millions of rows of consumer spend.

Contact me if you have a spend classification project, I'd be happy to walk you through our process and see how WAND can help.