Our Spend
Analysis Process

Our spend analysis process couldn’t be any simpler. SpendHQ takes all your messy, raw spend data through our market-leading spend data optimization process to ensure a minimum target of 97% spend categorization. Based on our 15+ year history of enabling spend visibility for leading companies, our innovative data approach incorporates machine learning and algorithm-based analytics built upon the $1.5T in spend and 8.5MM unique vendor records we’ve categorized over the years.

The foundation of SpendHQ is cleansed, normalized and strategically categorized procurement data. The spend analysis process is the first phase of any SpendHQ implementation, and it typically takes four to six weeks. Once your data is ready to be loaded into SpendHQ, one of our in-house procurement consultants will review it and help you uncover any immediate savings opportunities. That’s the SpendHQ Difference.

Our 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 $1.5T 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
Our Process
Our Process

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
Our Process
Our Process

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
Our Process
Our Process

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
Our Process
Our Process

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
Our Process
Our Process

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
Our Process
Our Process

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.

Our Process

Ready to See Our Solution?

Schedule a demonstration and see what SpendHQ can do for your organization’s spend challenges.

Start typing and press Enter to search