Blog Reporting and Analytics Best practice March 20, 2017
To enable accurate spend analyses, the data that the analyses are based on must be correct and of high quality. However, correct and high-quality data can be hard to get hold of. Erik Stening explains how Pagero can help.
How to enable accurate spend analyses
The purpose of Spend Analysis is to map purchasing patterns within a business and show what has been purchased, what quantities, from which supplier, and at what price. The conclusions made from the analysis is a help to create a more efficient and cost-effective purchasing process.
To enable accurate spend analyses, the data that the analyses are based on must be correct and of high quality. However, correct and high-quality data can be hard to get hold of.
Technical readiness often an obstacle
Many businesses make a great effort to digitise and automate their invoicing flows, which is a source of correct data of high quality. Despite all their efforts, the company’s e-invoice volume is often decided by the suppliers’ and customers’ technical readiness, and therefore, all the data is not digitally available.
This, combined with the fact that the company’s data can be out of date, incomplete and scattered across many different data sources (ERP-systems, purchasing systems, etc), makes the analyses anything but accurate and correct.
“To enable accurate spend analyses, the data must be correct and of high quality.”
The key lies in maximising the access to updated and complete data at invoice row level from the company’s purchasing invoices – regardless if the business partner can communicate digitally or not!
Receive all your inbound invoices digitally
With Pagero Data Capture, you will be able to receive all your company’s inbound invoices electronically into your financial system via Pagero Online, regardless if the supplier sends them digitally or not.
Electronic messages will be sent to you directly from the sender. Other messages will be sent via e-mail to Pagero Online, which will interpret and convert the information to electronic data, that will then be sent to your financial system.
Pagero Data Capture is a global solution that fits businesses and organisations of all sizes and will complement message flows that have not yet been digitised.
Maximise data capture – save time and money
Pagero Data Capture can interpret more information than traditional OCR scanning solutions, since the information is interpreted not just on header level but also on row level. The vastly improved data quality provides a better basis for analyses, projections and decision-making.
“By combining our tools, companies will be able to take spend control to a whole new level.”
Furthermore, Pagero Data Capture can interpret not just invoices, like traditional OCR scanning solutions, but also purchase orders. Labour-intensive tasks such as manual document handling and data capturing are eliminated. The reduced processing time shortens DSO, which improves company cash flow.
Spend analysis in real time
By combining Pagero Data Capture with Pagero’s tool for spend analysis, Accurate Spend Management, companies will be able to take spend control to a whole new level. Some examples of what can be clearly identified are:
Erroneous supplier invoices -e.g. when prices on the invoice do not match contract prices/price agreements, purchasing orders, or received products and services.
Purchases made from non-contracted suppliers in areas where there are agreements with other suppliers in place.
Purchasing categories with too many contracted suppliers.
Maverick purchases within the company’s organisation.
Do you want to know more?
Please get in touch for more information about how our services can help you make correct analyses and take control over your spend!