You can segment Spend Content in 3 main buckets: Simple catalogs, Good & Services and Contract driven Content
- Simple Catalogs : Many small value transactions
- Lists of items with individual descriptions and prices (such as office supply or MRO). Those catalogs can be provided as static files or directly via Punch-out or a through a marketplace.
- Typically accounting for 30% of spend and 60% of all transactions
- Goods and Services : average transaction value
- Ranging from items with complex descriptions (such as temporary labour) to items requiring configuration (such as PC’s). Best provided through direct contact with the supplier or again via Punch-out or a through a marketplace
- Typically accounting for 30% of spend and 30% of all transactions
- Contract driven : Big transaction value
- Predominantly populated by internal contracts set up by strategic sourcing or via a sourcing tool allowing commodity managers to analyse contact progress. Examples include cleaning contracts or car leasing.
- Typically accounting for 40% of spend and 10% of all transactions
Best In Class are achieving a good level of automation via eCatalogs but as you can see in the indicative table below, not more than 50% of Spend is eCatalog enabled for any macro- category.
[amazon text=Amazon&template=my favourites]