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.

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