Context and Challenge
- An Australian state government sought a solution to rapidly analyze supplier spend, visualize category insights and identify procurement optimization opportunities.
- Less than 65% of spend was accurately categorized, which negatively impacted visibility and limited their ability to identify and activate cost savings.
- The government needed to aggregate large amounts of disparate procurement data and sought a solution for classification and analysis.
Approach and Solution
- Using the technology behind Mastercard Global Treasury Intelligence, the government received a comprehensive view of supplier spend through a centralized, user-friendly platform.
- The solution allowed the government to extract data from multiple enterprise resource planning (ERP) systems on a monthly basis, with no required integration.
- All transactional data was cleansed before classifying against United Nations Standard Products and Services Code® (UNSPSC®) and an internal taxonomy.
Solution
The technology behind Mastercard Global Treasury Intelligence provided a 360-degree view of all procurement data, enabling key stakeholders to easily drill into spend optimization opportunities.
95% of spend, totaling AU$17B, was accurately categorized according to UNSPSC taxonomy.
AU$65M total realized cost savings due to enhanced governance and reduced contract leakage.
“This capability is critical to enable better data-driven procurement decision-making and promote more streamlined processes for buyers and suppliers.”
Chair of Procurement Board Excerpt from Annual Statement
