Our Spend
Analysis Process

Step 1:

You provide raw spend data.

We are data-agnostic, which means we accept your data in any format from any database—all we need are flat files, which can easily be exported out of any system. Our innovative data approach incorporates machine learning and algorithm-based analytics built upon the $4T in spend we’ve categorized over the years.

• You export and send the data to us
• We take it from there
• Redundancy, entry errors and lack of input discipline obscure the data

Step 2:

SpendHQ consolidates the data.

We consolidate your raw spend data from all of your sources, including Accounts Payable Systems, Expense Management Systems, Enterprise Resource Planning (ERP) systems, P-Cards and every other possible source of non-payroll spend.

• The required data is readily available in most systems using standard reports
• We accept any data format and will merge multiple formats
• Consolidation Record: 60 data files in 23 currencies for a multibillion-dollar holding company

Step 3:

SpendHQ normalizes the data.

We normalize your vendors and categorize their transactions using our proven spend taxonomy and then customize it to your specific needs.

• Normalization and Categorization databases leverage ISG’s vast experience
• Automatically normalize redundant supplier names
• Fuzzy logic and keyword searches resolve new suppliers
• Consolidate employee records to a single supplier record

Step 4:

Categorization and Customization is applied.

The SpendHQ team categorizes and customizes your spend data to create a procurement-focused spend profile.

• Automatically categorize known suppliers using our proprietary taxonomy and customize for each client
• Apply multiple other category-specific queries to advance categorization
• Mine client GL coding to further resolve unknown suppliers
• Example: a $1.5B public client had 19 spelling variants for FedEx charged to 26 GL codes

Step 5:

Our sourcing experts review data.

SpendHQ and Insight Sourcing Group procurement professionals will review your spend profile to ensure accuracy.

• Full vetting of output conducted by our sourcing professionals
• The key to SpendHQ’s accuracy is people delivering what databases cannot – human logic and targeted research

Step 6:

You review the results.

After everything is vetted by our sourcing professionals, we then perform a review and sign off with you.

• No data loaded into SpendHQ without client sign-off
• Used to validate categorization and resolve ambiguous suppliers
• Duration of this task depends on data volume and complexity

Step 7:

Clean sourcing data loaded in SpendHQ.

After the client review, your clean sourcing data is uploaded to SpendHQ, which you can use to view spend data, spot trends and drive immediate savings. Your data can be refreshed as often as needed to ensure sustainable, long-term clarity – keeping you in control.