Category Archives: Spend Analysis

Iasta: Smart-Source Style! Part III

It’s been a while since Part I, where we covered the inclusion of native analytics capability, improved native contract management capability, and better integrated SIM & SPM capabilities in the Iasta platform and Part II where we covered extensive support for third party data feeds, P2P integration capabilities, and customizable reporting, but that doesn’t mean Iasta has been sleeping. Since then they’ve had a new major release, and a few minor releases, of their platform, which have included the following improvements:

Extended and Streamlined Project Management
One of the big changes was the ability for an organization, and a user, to define configurable project fields with whatever information they want to track — and all of the user-defined fields can be included in scorecards and analytics. So, in addition to name, start date, end date, etc. you can have custom sub-types, budget codes, execution hours, etc. The project team can be defined by role, with as few or as many roles as you like, and each role can have the user assigned, and re-assigned, as necessary.

Furthermore, setting up a project is a quick 5-step wizard-driven process:

  1. Basic Project Metadata
  2. Project Team and Customized Fields
  3. Project Classification and Value
  4. Bid Type, Display Settings, and Additional (Optional) Project Properties
  5. Lots and Items

Executive Analytics

In addition to the standard Smart Analytics module that was introduced in version 8, Iasta has added a new Executive Analytics module built on top of the Smart Analytics module that includes a set of dashboards with the most commonly requested executive reports and requests split into sourcing, scorecard, contract, profile, and trending dashboards.

In addition, each user can define their own dashboards with their own reports on any data fields associated with any data element from any project, supplier, contract, scorecard, etc. they have access to. New dashboards that can come pre-packaged with the solution include diversity and savings tracking dashboards. If you integrate an e-Procurement or Accounts Payable system feed (with a daily or weekly update), the reports on the savings tracking dashboard will compare actual versus projected spend and show you captured versus projected savings.

Excel Bidding & Embedded Optimization

Not only can bids be submitted in Excel, but Iasta finally added the ability to define individual bid fields in an Excel spreadsheet and upload complete bids broken down on all relevant cost dimensions – unit quote, shipping, tariffs, surcharges, etc. In addition, the optimization module, which used to be stand-alone (and which required projects to be imported to build models), is now embedded in the main suite and it’s easy to switch to the optimization tab and pre-populate a model with bids collected in an RFX.

Streamlined Supplier Portal

One thing Iasta has learned is that, even if a supplier makes a claim to the contrary, they are never as technical or proficient with the tool as the buyer and the best way to not only get a supplier to use a tool, but to minimize the supplier management and support time required as well, is to make that tool as easy to use as possible from the perspective of the supplier. As a result, they have completely redesigned their supplier portal so that when a supplier (rep) logs in, they can quickly see their current tasks in a front-and-center task list that breaks down their task by type, their active projects by status, their most recently completed tasks and projects, and quick links to their profile, training, and scorecards. Each project has a clear and succinct timeline and status for each of their requirements, bid and award history is available for each lot, and outstanding surveys are on the main page as well.

Survey navigation is greatly improved, with the user being able to quickly jump to specific pages and see the status of each page that is her responsibility. She can also assign pages to other team members if their input is needed or they are better able to provide the information. Everything is fully indexed and searchable and it’s designed to be just as easy for a supplier to manage her bidding and survey completion projects as it is for a buyer to manage his RFX and survey creation projects.

Session Sharing

In their newest version, Iasta has implemented a screen-share technology where a user can send her colleague or superior a link through an email that they can use to enter a screen-share with the user within the Iasta application, see what the user sees, and even take over the mouse and drive if need be. The Iasta platform is providing a great, easy, way to get multiple users on the same page.


Sourcing platform for users and bosses too. Sweet.
SaaS on the cloud, always on, real-time reporting complete. L33t.
Analyze this. Auctions, Performance. Real time data.
Optimize It. Contracts, and vendor schema.
One. Two. Smart-Source Success!

 


Sourcing Smart-Source Style.
Smart-Source Style.

Basware: P2P for the Global “E” Part IV

In today’s post, we continue our introduction to Basware, a Finnish provider of enterprise finance solutions that serves the global e-Commerce, P2P, and AP Automation marketplace with over 2,000 international customers that collectively do business with over 1 Million companies in over 100 countries. In Part II we discussed the AP Automation and Invoice Processing solutions, the full Purchase-to-Pay process coverage from the Procurement and AP perspective, and the full compliance with e-Commerce, Taxation and Digital Signature Requirements that they offer in over 50 countries. Then, in Part III, we discussed the Basware Commerce Network (BCN). An open commerce network that connects almost 1 Million companies in over 100 countries through 170 partner networks, the BCN currently delivers over 60 Million e-invoices per year with a combined value in excess of $420 Billion and Basware expects to be processing over 150 Million e-invoices a year by the end of 2015 with a combined value in excess of $1 Trillion dollars. Part of this increase will be as a result of Basware’s new partnership with Mastercard, which provides suppliers’ a guaranteed payment once the invoice has been approved, and an early payment option as well. In addition, buyers can have extended payment time if they need it. In addition, cross-border payments, which take over a week on average, are simplified and generally executed at a reduced cost to both parties.

Today we are going to focus on their analytics capability, called Basware Analytics. Basware built their analytics platform on top of Tableau Software‘s Data Visualization Engine, a high-performance data engine designed to allow for real-time data analysis, visualization, and reporting. Using this engine as a foundation, they focussed on designing an analytics application that was useable by the average Spend Management professional and that presented that professional with over 80% of the information across the P2P cycle that a Spend Management professional needs immediately upon log-in.

Over time, Basware has built a suite of package reports that cover 80% of a Spend Management and Finance organization’s need for process and spend visibility to drive process efficiency. In addition, they provide a suite of templates that can be easily altered in such a way that, in most organizations, users are able to build reports that quickly cover most of the reporting needs not covered out-of-the-box within a few hours of deployment, and gradually build reports, possibly with the help of Basware’s services organization, that will let them achieve the remaining 20%.

The solution was designed from an AP and Procurement perspective and in addition to standard procurement reports which include, but are not limited to, total spend, geographical spend by organization or cost centre, top suppliers, top products, invoices received, procurement KPIs, and maverick spend, there are accounts payable reports which include, but are not limited to, invoices received, invoices received with or without a contract or PO, cash flow analysis, spend by supplier analysis, AP KPIs, AP Process and Cycle Times, and AP Financial metrics. Each report allows for real-time drill down and filtering on any dimension. Because the underlying analysis engine has been built to sit on top of all invoiced spend and related P2P data, the platform can address spend visibility, supplier performance, procurement performance, contract compliance, catalog coverage, cash forecasting and management, accounts payable and invoice management. With the visibility provided, you can dive into opportunity identification, process optimization, and rationalization.

Users can access the template behind any report and quickly customize it by adding or removing available dimensions, customizing filters, and tweaking the layout. A user can select which of the available data sources1 (which have been mapped to a common schema) she wants to use, specify the dimensions of interest (to build the cube), define the default ranges and allowable filters, choose the graph types, and modify the layout. The application supports all of the standard graphs and charts, including cloud charts (which is great for looking at search term history or the most common products and/or services being bought) and tree-maps, which give a quick visual representation as to which supplier, cost centre, product, etc. is accounting for the most (maverick) spend. It’s one of few, and most effective, implementations of cloud charts and tree maps that SI has seen to date.

The user does not require any technical skills to modify the templates to adjust or create new reports. This solution is optimal for giving more people within the organization real-time access to spend and process metrics, and allows the Procurement and Finance organizations to begin their spend analysis journey immediately. (In addition, if the user needs help or wants to add custom data sources, Basware has professional services personnel in North America, Europe, and Asia Pacific and offers a broad suite of support services, including supplier activation/onboarding, in 10 languages: English, Finnish, Swedish, Norwegian, Danish, Dutch, German, French, Spanish, and Portuguese.)

1 Even though reports are limited to Basware’s data sources out of the box, the customer has an option to extend the reporting solution to other data sources through the use of other Tableau Software tools leveraged by Basware.

A New Year is Upon Us – Do You Have Your SpendHQ Ready To Go? Part IV

In the first three parts of this series, we introduced you to SpendHQ, a spin-off of Insight Sourcing Group (ISG), one of the strongest, but yet most overlooked, players in the spend visibility and analysis space from a software and services solution viewpoint. Introduced is the operative word here as we only reviewed the features of the product at a high level — each tab of each module has many more features, options, and capabilities than we reviewed, as our goal in this initial series was just to outline the capabilities of a solution that has been under development for close to a decade. Unlike most spend analysis solutions that were designed and built by sourcing solution providers, SpendHQ was designed by sourcing and spend experts and implemented by a development team experienced in the implementation, and integration, of sourcing and spend analysis solutions.

The solution, which so far consists of a spend visibility and category management module, soon to be accompanied by a contract (metadata) management module that will allow an organization to track contracts, associated prices, and expiry dates (and associate them with managed spend categories), as any expert in spend visibility and analysis knows, is only as good as the data it contains.

Fortunately, SpendHQ manages the entire process and has a good handle on the matter at hand. From consolidation through normalization, categorization, cleansing, and enrichment to cube building and release, the SpendHQ team is experienced at the end-to-end lifecycle.

And, moreover, they recognize that this process can take time. Even though a spend expert with analytics expertise can map 90%+ of spend by hand with the right tool in a week for even the largest fortune 500, most companies don’t have this spend expertise in a single person, don’t have all of the data available in a single merged instance, and don’t content themselves with 90% of spend when many providers promise 98%+ (even though this increased level of accuracy doesn’t make a difference during an initial spend analysis effort and initial project selection, as an organization always goes after the biggest cost savings opportunities first, which can always be identified with 90%+ mapping accuracy). As a result, while some spend analysis providers will promise to have you up and running in a week (and work their Indian data mapping team to the bone 24/7 in an effort to meet this goal), SpendHQ makes a more reasonable promise of six weeks from initial consultation to final deployment. The SpendHQ team knows it will take time to get data, create merge rules, cleanse, classify, review with the customer, create new rules, re-classify, enrich, get executive sign-off, and roll-out. Sometimes the process only takes a couple of weeks (with a smaller company that’s really on the ball), but, as a consulting firm, they know better than to make promises that are unrealistic (and it’s always better to beat a deadline than to miss it). Considering that they can get to full-deployment for even the largest multi-billion dollar companies with 60+ file formats and 20+ currencies in this timeframe, you don’t have to worry that they won’t be able to turn-around data and mappings as fast as you can get them the data and review the mappings.

ISG has been doing spend analysis engagements since it was founded in 2002 and started working on it’s own spend analysis toolset shortly thereafter (with the first commercialization of its spend analysis product in 2007) and, as a result, ISG and SpendHQ are quite familiar with the fragile data supply chain. Poor data input discipline leading to 200 different supplier names for FedEx in your system? Multiple AP Systems that fragment spend data across the enterprise in different file formats? Accounting oriented categorizations useless for spend analysis? Maverick spend gone wild? They’ve seen it all and can deal with it all. And before the cleansed and categorized data is presented to the customer, it is reviewed by North America and European Union based sourcing professionals — not by a low-cost data-entry tech in an outsourced Indian development shop.

And, as per recent posts, the SpendHQ product is extremely useable — one of the best UIs SI has seen yet for a vendor-managed spend analysis product that is designed to be comprehensible by even the most technology-inept. (SpendHQ believes their UI to be their competitive advantage, and SI agrees.) It’s a great entry point to spend analysis and a quick way to identify your top savings opportunities and get sourcing projects to address them underway. (And then, a few years down the road when you’re ready for do-it-yourself advanced spend analysis, it’s a perfect segway into a product like Opera’s BIQ — which supports multiple categorizations, multiple cubes, and the ability to re-define your own rules hierarchy on the fly — when you’re ready to dive deeper into tougher opportunities.)

A New Year is Upon Us – Do You Have Your SpendHQ Ready To Go? Part III

In the first two parts of this series, we introduced you to SpendHQ, one of the strongest, but yet most overlooked, players in the spend visibility and analysis space from a software and services solution viewpoint. As noted, the SpendHQ solution, which currently consists of a spend visibility and category management module that will soon be accompanied by a contract (metadata) management module, is a good starting point for a company which needs to get up and running with spend visibility quickly.

The category management product has five main components: dashboard, details, order analytics, pricing, and savings.

The dashboard summarizes the spend from spend visibility, the managed spend, the core list compliance, and the pricing accuracy as well as metrics related to company, supplier, item, buyer, location, and budget center, among other identifiers. If the user selects pricing tier, she will see the average order size, total orders, and wholesale spend for the relevant pricing tier. From the dashboard, the user can quickly drill into the top level categories. In addition to the total spend trend graph for the default time period, the user can also see the maverick spend by supplier, ordered by the suppliers who receive the most maverick spend. Or, the user can drill into the metrics.

The details section is designed to allow a user to quickly drill into a category and get the relevant subcategory and item, buyer, or location information related to that category. On the item screen, for example, the buyer can quickly see the total spend, the total unit, the most recent price, the price trend, MSRP (if known), and the date of last purchase.

The order analytics section is designed to allow a user to drill into the order patterns for a category or subcategory and see the average order size and how it changes over time. A user can drill into the components of an average order or into the detail of all orders in the time period.

The pricing section is designed to allow a user to analyze the price paid for an item, or set of items, over time, relative to the price that should be paid. The user can see the total overcharges and undercharges for the time period in question, the net result, and the overall pricing accuracy. This allows a buyer to not only figure out where overcharges are rampant, but where it makes sense to go after them. If the item, or category, also had a significant number of undercharges (because the retail price went down during the time period and the supplier charged retail instead of contract throughout the time period) and the net result is that the net amount lost was small, it might not be a good idea to go after the supplier on those items as they will insist the undercharges be recognized (and be applied against a category where they rampantly overcharged you).

The savings section shows the user how the organization fared on a category, subcategory, or item over time relative to a (set of) baseline price(s) for the category from the comparative time period (before the current prices were put in place).

The details component is broken down into overview, item detail, buyer detail, and location detail subcomponents, allowing a user to see, for the category or categories of interest, the relative spends and then dive in by item, buyer, or location. In the item detail, the buyer can drill down into full purchase history by buyer if she desires.

All-in-all, the SpendHQ solution gives the user great visibility into their category spend, and the drivers of that spend (be it a department, location, or rogue set of buyers) and helps the organization manage that spend.

A New Year is Upon Us – Do You Have Your SpendHQ Ready To Go? Part II

Yesterday we introduced you to SpendHQ, one of the strongest players in the spend visibility and analysis space from a software and services solution viewpoint. Unlike most spend analysis solutions that were designed and built by sourcing solution providers, SpendHQ was designed by sourcing and spend experts and implemented by a development team experienced in the implementation, and integration, of sourcing solutions.

In today’s post we are going to dive into the visibility module. The goal of the visibility module is to help the sourcing team, and the C-suite, get a handle on what the organization is spending over time (by quarter, month, or year — depending on the amount, and granularity, of the data available). The SpendHQ solution does this by pre-constructing a spend cube tailored to organizational needs and providing an interface that can drill into any level of detail, on the dimensions of relevance, and filter out any data items of interest, or non-interest, along any dimension. The solution then presents the data in a very easy to understand graphical display that is designed to be focussed on the most relevant items of interest, and only the most relevant items of interest. In the SpendHQ solution, no screen has more than three graphs. The designers, which have experience with a number of sourcing and spend products and associated dashboards, have found that any more than three graphs on a screen not only clutters the UI, but often distracts the decision makers from the most relevant data (which leads to more time spent analyzing the wrong data and less time focussed on what really matters from a savings perspective). This does not limit the usefulness of the product in any way as another key feature is that every screen tells you exactly where you are in a drill down as well as what filters have been applied. Furthermore, a user can always jump back up to any level or down to the bottom (using a pre-defined saved filter) and every piece of data is selectable and filterable dynamically. (So, even though the user only gets one cube, the user can extract any subset of that cube and view it along the dimensions of the user’s choice.) Plus, the current view, and all of the data behind it, can always be extracted to an Excel spreadsheet at any time (which makes it easy for the user to build reports, verify analysis, and load it into the supply management software of their choice for subsequent event execution and tracking).

The visibility product has six main components: home (the spend-trend dashboard), details, compare, compliance, reports, and tools.

The spend-trend home dashboard displays a spend trend graph for the default (but changeable) date range by month, broken down by category, the total spend, and the total number of vendors who contributed to that spend. From here, a user can drill into the relevant categories. Selecting a category brings up a screen with the spend for the category, broken into sub-categories.

The details section breaks the spending down by category and vendor, allowing the user to see trends by selected categories and subcategories, and, if desired, restrict that view to a select group of vendors.

The compliance section allows the user to quickly determine how much spend is being managed relative to the total organizational spend and how much of that managed spend is compliant. This allows the organization to not only determine the compliance rate, but the impact rate — which is the amount of compliant total addressable spend. This section is broken down into an overview section, a managed spend section, an unmanaged spend section, and a Rogue’s Gallery (TM) that summarizes the top unmanaged categories and the top non-compliant subcategories so that a spend manager can quickly zero-in on the biggest offenders with respect to compliance, and generate a list of the top locations, departments, and buyers.

The reports section allows the buyer to quickly access standard and pre-defined reports and the tools section allows the buyer to define their configuration options.

One of the unique features of the application is the Power Filter that allows a user to quickly select the spend range, dimensions of interest, and the relevant items as well as filter out the sub-dimensions and even line items of non-interest. With this tool, even the most novice of users can quickly slice and dice out just the data of interest to them. The user can save any and all filters of interest and (re) apply them at any time.

It’s not only a powerful spend visibility solution, but a very useable one. If your company is a mid-market company without a (useable) spend analysis or visibility solution that needs to get one up and running quickly, accurately, and usefully, take a very close look at SpendHQ. It’s a great starting point on your spend visibility and analysis journey.