Unlock the hidden value in your line item data

In an ideal world each and every product or service procured would be accurately, consistently and appropriately classified at the point of purchase and the data made readily accessible in order that it may be used by procurement professionals to inform and improve the procurement process.

In reality analysis of what was bought is hampered by incomplete or poorly structured item descriptions as well as inconsistent and often erroneous classification. As a consequence, the data is relatively valueless for strategic sourcing purposes.

To ‘unlock’ the hidden value in your line item data we’ve partnered with Zycus to leverage 'AutoClass' – their artificial intelligence (AI) based classification engine that ‘reads’ item descriptions and supplier names, howsoever they have been entered. It then 'infers' the UNSPSC category, or any other hierarchical classification system that it has been taught.

Proven Technology that delivers accurate results

AutoClass is no 'ivory-tower' technology - the classification engine is currently being used by many of the world’s largest buyers of goods & services. And it really works: in one project AutoClass was used to 'read' more than 160,000 medical item descriptions and classified 96% by volume and 92% by value to UNSPSC Class & Commodity at an accuracy of 86%.

Classify allows you to answer questions such as:

• How much are you spending by UNSPSC or eClass segment, family, class or commodity?
• Which suppliers are supplying goods & services in which UNSPSC or eClass categories?
• Are there any UNSPSC or eClass categories where there are indications of inexplicable price variance by item?

To arrange a meeting to discuss how implementation of the Observatory can help you to unlock the hidden value in the ine item data in your own organisation then please contact us.