A procurement spend taxonomy is a well thought out database structure that puts spend data into groups that make it easier to obtain and analyze. When effectively deployed, a strong taxonomy will improve the effectiveness of both your tactical and strategic procurement efforts.
The benefits include:
- Immediate visibility of current and historical spend (at a total, category, commodity, and segment level)
- Significantly reduced time to get correct data and turn it into usable information
- Near-immediate ability to recognize changing spend patterns including rouge spend
- Easy deployment of procurement dashboards
Click here for a brief slide set summarizing what an effective spend taxonomy looks like.