Optimization of the purchasing process is impossible without a detailed understanding of current consumption patterns. TSV enables complex firms to analyze their consumption model automatically using a powerful spend analysis tool.
Globalization, delocalization of production, and mergers and acquisitions all create complexity that traditional IT systems are unable to effectively support. The purchasing problems faced are many and varied:
- direct materials that do not have a unified master data coding system,
- a sizable proportion of indirect materials are un-coded,
- a non-homogeneous system of classification with few categories and little detail, or
- a very detailed system full of items attributed to the wrong category.
These conditions make it difficult to answer standard questions regarding one’s consumption habits: what, how many, from whom, at what price, and under what conditions is the company making its purchases? TSV uses all available information, including information that the ERP and data warehouse contain but do not use. TSV uses order descriptions, supplier names, master data, units of measurement, and anything else available to generate and maintain a ‘by nature’ spending analysis of consumption habits.
TSV gives you powerful tools to browse your consumption model and easily identify aggregated goods purchased, their similarities, purchase price, type of supplier, common brands, and more. Procurement can finally identify savings linked to economies of scale, rationalize the supplier base, and launch initiatives that can be quantitatively monitored and measured.
Related Case studies
