Procurement leaders know that clean data equals leverage. Pearstop automates classification across thousands of spend lines, making procurement analytics trustworthy and fast.
“Our data finally works for us — not the other way around.” — Procurement Lead, Industrial Client
Be a winner – Roger Federer playing tennis. Copyright New York Times.
A leading European infrastructure and construction company has identified major cost savings can be obtained through optimising their existing supplier relationships and more cost-effective purchasing decisions. The high-level strategy is clear: identify where in the current spend are existing inefficiencies, and either negotiate better contracts or move to the lowest-cost supplier.
Even though the total potential cost savings have been identified as having an order of magnitude of millions by the world's leading management consultant, their spend analysis is high level and strategic. Meaning: not workable for operationalising the cost-saving initiative. The category system is not specific enough, and the local language procurement lines are regularly misclassified – training courses as “Water Pumping Equipment.”
The cost-savings, however, are promising. The company decides the data must be re-classified within a detailed, procurement specific scheme: the United Nations Standard Products and Services Code (UNSPSC). Now, a new challenge rises: there are over hundreds of thousands of lines of spend data to be classified. Manual work would mean five analysts on the job, two months full-time. Coming with substantial cost and associated risks of inconsistency through human error.
Pearstop’s standalone classifier processed data securely inside the client’s environment.
Users validated proposed categories through an intuitive interface; every correction retrained the algorithm, improving accuracy with minimal effort.
The system became more precise every week, delivering consistent procurement data for strategic reporting.
Over €200k in labour cost savings.