Unmasking Reseller Spend

Fellow InCighters,

Enterprise Technology purchasing via resellers is universal, as a result knowing the total spend with your OEMs, Software Publishers and Service Providers is not possible as in place financial systems are not designed to unmask the reseller spend. This results in loss of negotiating leverage and excess suppliers. This month we highlight how a client leverages the AI & ML based TruSpend® from CIO InCight® that reveals the all-in spend with their vendors, both direct and what is purchased via reseller.

Manually tracking their reseller spend did not scale, was error-prone, and required aggregating multiple disparate data sources. The Nexus Automation Engine™ automates the cleansing, classification and categorization of vendor spend and works with all financial systems. By building from the product level detail, it is purpose built to solve the obfuscation of purchasing indirectly. We highlight two InCight® Analyzer examples to show how our client now has an automated, out of the box solution that delivers “real dollar saves”.

InCight Analyzer of Cisco Spend.

They were very surprised to learn that 80% of the Cisco spend was done indirectly through 6 resellers. By analyzing the direct spend, myriad of resellers being used and what specific product is being purchased through each supplier, significant leverage was realized.

InCight Analyzer TruSpend vs Procure to Pay (P2P) system.

When querying the P2P system for OEMs and Software publishers, the spend was a fraction of the actual due to the reseller purchasing. We highlight 4 specific vendors below as an example.

In addition, many do not even appear in the P2P reporting due to all of the purchasing being done via resellers – as shown here for NetApp and Salesforce.

In addition the P2P is also not able to do OEM Parentage, the above for Dell Technologies is an example. Along with unmasking reseller, TruSpend automates the roll up of all vendor subsidiaries – affording even greater leverage. This detailed visibility into reseller spend, that was previously unavailable, resulted in better leverage across the board with their vendor landscape, and facilitated consolidating the number of suppliers used.

From the CPO:

“Pre CIO InCight we tried to manually track what we were spending with our vendors but had no idea due to purchasing via resellers. Our inhouse effort was time consuming, didn’t scale and truly not a good use of my team’s time, we all want to work more strategically. Having an automated solution in place has been a game changer and resulted in tremendous cost savings via leverage and consolidation. In addition having an accurate, intuitive, centralized view of vendor and category spend has my team, IT and Finance seamlessly collaborating like never before.”

Use Case:

In this video clip, NASDAQ discusses how CIO InCight unmasked their reseller spend.

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