SearchProcurement & Strategic Sourcing

Spend Analytics

Spend analytics software that classifies every dollar and pins every saving to the invoice lines behind it

Every dollar classified, and every saving pinned to the invoice lines behind it.

See one case, screen by screen ↓
demo$612ka yearfound on one laptop bought from six resellers at $1,128 to $1,412, checked against the contract clause
demo41 → 9suppliersvendor records in IT hardware resolved to parent companies, each family with its registry, ownership and bank evidence
demo97.8%accuracy measured blind by a second agent on 1,200 lines sampled by value — 1,174 agree
target0.5%of addressable spend found as savings in the first refresh, each pinned to its invoice lines
In short

What is Spend Analytics?

Spend Analytics is spend analytics software that classifies and cleans all spend by category and supplier to find savings for procurement. Seven agents pull every invoice, card and travel line and reconcile each source to the ledger, merge duplicate vendor records into parent companies, place every line in your category tree with a reason in words, and pin every saving to the invoice lines behind it. Category owners sign each rule and saving, and finance signs what is banked.

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Updated

The problem

Why category managers stop trusting the spend cube, and savings rarely reach the P&L

Spend sits in millions of invoice, card and travel lines across several ERPs, coded to whatever ledger account was to hand when the invoice was paid. A notebook bought by free-text requisition lands in office supplies, repairs or sundry; a card purchase lands under the merchant code of an electronics store. The vendor master hides the same company under several records — one per currency, a subsidiary, a former name, a card merchant that pays into the same bank account — so a strategic relationship looks like several small ones.

So the spend cube becomes a project instead of a habit. The analyst spends the first week of the month rebuilding it, category managers do not trust the classification and rebuild their own numbers in a spreadsheet, and corrections made line by line vanish at the next refresh. A savings number on a slide cannot be traced to the invoices behind it or checked against the contract, and savings found are rarely savings finance has banked.

typical10–20%of a vendor master is duplicate records before a cleanse
typical60%less savings leakage than peers, for world-class procurement teams that cut off-contract buying
Where a monthly spend refresh's working days goestimated
By hand15 days
With the solution2.8 days
  • Pulling lines from each ERP, card and travel feed and reconciling them to the ledger3 → 0.3 d
  • Cleansing vendor names and merging duplicate records2 → 0.5 d
  • Re-coding lines the ledger placed in the wrong category4 → 0.8 d
  • Answering “why is my number different?”1.5 → 0.3 d
  • Finding and sizing savings, and checking them against the contract3 → 0.5 d
  • Tracking approved savings to banked with finance1.5 → 0.5 d

Estimated split for one monthly refresh in one large category, by hand and with the solution. Days are working days for the spend analyst and the category manager; decisions still take a person.

How it works

How spend becomes savings

Seven agents load, merge, classify, check and size savings; the category manager signs every rule and saving, and finance signs what is banked.

What comes in
Spend in6 sources · three ERPs, plant ERP, cards, travel
Agents at work
Spend loaderreconciled to the ledger
Then
Supplier normaliserrecords into parents
Spend classifierevery line, in words
Then
Validatorblind sample, measured
Contract matcheron or off contract
Then
Opportunity agentsavings pinned to lines
A person decides
Category managersigns rules, merges and savings
What comes out
Classified spend
Savings pinned
Signed by finance
One case, step by step

One monthly refresh, from the morning note to a saving finance can bank

Kestrel & Vane Group spends $6.20 billion a year with outside suppliers, in 4,182,640 lines across six spend systems. On Wednesday 14 October the agents publish the October refresh before the working day starts. Anouk Verhoeven, category manager for IT hardware and devices, opens it. Here is what happens next, screen by screen, in the working solution.

  1. 01Wednesday morning

    A note from the agents, beside the spend ladder

    Anouk Verhoeven · Category manager, IT hardware

    Her home is two things: a conversation with the spend agents on the left and the spend ladder on the right, from all spend ($6.20B) through Indirect and IT & telecoms to IT hardware ($118.4M, 41,870 lines). The morning note says the refresh is reconciled to the ledger, that the agents moved $45.2M in IT hardware to the right category, and that three things wait for her: 9 supplier families, 6 rules (1 held below target) and a new saving, OP-0412, at $612.0k a year.

    Every rung shows how much the agents moved from the ledger coding and the accuracy the validator measured — IT hardware: 38.2% moved, 96.9% accurate, 93 of 96 sampled.

  2. 0209:20

    41 vendor records become 9 parent suppliers, in view

    Supplier normaliser

    She splits the IT hardware rung by supplier and the normaliser shows its work: every family is one company by registry number, ownership filing, tax ID or bank account. The 41 records collapse into 9 parent suppliers on the ladder. One candidate, Arden Digital Media, is held for her rather than merged.

    “41 records → 9 parent suppliers. Proposed by the normaliser, waiting for your review.”

  3. 0309:21

    “Why did laptops move out of office supplies?”

    Spend classifier

    The classifier answers in the thread and the ladder follows it down to End-user devices. 1,284 lines name the Aster 14 G5 notebook but were coded to Office supplies (612 lines), Repairs & maintenance (301), Sundry (214) and card “electronics stores” (157). It proposes moving all $5.31M to End-user devices › Laptops under rule RL-118; the validator checked 60 of them blind and agreed on all 60.

    “Nothing moves until you accept the rule.”

  4. 04One click on a citation

    Every number opens the line behind it

    Anouk Verhoeven · Category manager, IT hardware

    Each number in the answer carries a citation. The first opens the invoice line itself: Vantor Direct Ltd, invoice VD-88214, line 1, 4 Aug 2026, delivered to Brno, free-text request REQ-55021, coded to GL 6990 Sundry, $2,824.00 — “2 × Corvel Aster 14 G5 notebook … Unit price $1,412.00”, with the words the agent read highlighted.

    “Nothing on this page was typed by an agent; it is the record as it sits in ERP Europe.”

  5. 05Start my review

    One supplier family at a time, with its case

    Supplier normaliser

    Her October review has five steps — supplier families, rules, unsure lines, disagreements, savings — with 107 items waiting. Northgate Technology comes first, 99% confident: eight records in four systems, $31.6M. Two share the registry number of Northgate Technology B.V., five are subsidiaries in the parent's ownership filing, and the card merchant “NGT*ONLINE STORE” settles into the same bank account. She can approve the family, split a record out, or ask the normaliser before she does.

    The normaliser never merges below 90% confidence, and never merges two registry numbers without a parent link — Arden Digital Media Ltd is held for her: the name is close, but it is a marketing agency with its own registry number and no ownership link.

  6. 06Rules, not 1,284 lines

    A rule in words, with its reach and its sample

    Spend classifier and validator

    RL-118 reads “Lines that name the Aster 14 notebook belong in End-user devices › Laptops”: 1,284 lines, $5.3M, replacing four codings, with the classifier's reason — buyers at nine plants raised free-text requests or paid by card, and the words on the line, the supplier and the unit price all point to a laptop. The validator: 60 of 60 agree. An accepted rule applies to every line, past and future, with a reason code.

    RL-121 is held: 37 of 40 agree (92.5%), below the 95% target — two printers and a toner recycling service would have moved.

  7. 07Disagreements

    Two agents disagree in the open; she settles it

    Validator

    The validator classifies its sample blind, before it sees the classifier's answer: 1,174 of 1,200 lines agree across all spend (97.8%), 93 of 96 in IT hardware. Where they differ, both make their case. On D-07, an extended warranty for 85 Aster 14 units at $9,350.00, the classifier says End-user devices › Laptops — bought on the same order and priced per unit — and the validator says IT services › Hardware maintenance, because a warranty is a service contract.

    She picks “Classifier is right”, “Validator is right” or “Split the line”; the decision is logged and the agents learn from it.

  8. 08The saving

    One laptop, six resellers, $612,042 a year

    Opportunity agent and contract matcher

    The group bought 6,308 Corvel Aster 14 G5 notebooks in twelve months from six resellers. Northgate, the contracted reseller, charged $1,128; the others charged up to $1,412. The agent shows the price by reseller and the arithmetic — 1,180 × $68 + 1,020 × $116 + 860 × $161 + 610 × $219 + 498 × $284. Before it counted, the contract matcher checked clause 4.2, that the contract is in force to 31 Mar 2027, the item code on all 1,284 lines and Northgate's catalogue, lead time 5 days.

    “Not counted: clause 4.2 gives $1,104 above 5,000 units a year; negotiating it on all 6,308 units would add $151.4k.”

  9. 0909:22 · Signed

    She approves with a reason; the baseline freezes

    Anouk Verhoeven · Category manager, IT hardware

    She approves OP-0412 with OA-01, “Saving confirmed against contract”, signed with her name and role. The savings tracker freezes the baseline at $7,727,466 for 6,308 units, and the plan the agent drafted becomes ready: route Aster 14 requests to the Northgate catalogue, a notice to 23 buyers at 9 plants, a card rule for IT resellers above $600, and a letter asking Northgate to confirm the price hold to 31 Mar 2027.

    The notice and the letter wait for her: the agents never send anything to a supplier or a buyer.

  10. 10Every month after

    Finance signs what is banked

    Ruben Castell · Finance business partner

    Across the group the agents have found $33.45M; $24.27M is approved and $4.76M realised this year. The tracker measures realised savings from new invoices against each frozen baseline, price effect only, and Ruben validates or returns each one with a reason. $2.67M is banked so far; $2.09M waits for him. Ruben will validate OP-0412 from November's invoices.

    “A saving counts as banked only when finance validates it against the baseline frozen on the day it was approved.”

Who it’s for

Built for everyone who answers for a spend number.

The same refresh, seen by five of the people who carry it — what their month looked like, and what it looks like now.

AV
Anouk VerhoevenCategory manager, IT hardware and devices · owns $118.4M
Category manager
Before
“If I can't see the invoice behind a number, I can't take it into a negotiation.” She rebuilt her own numbers in a spreadsheet because she did not trust the cube.
Now
Asks the agents in plain words, opens the invoice line behind any number, and decides rules, families and savings one at a time with a reason.
TO
Tomás OkaforSpend analyst, procurement excellence · runs the monthly refresh
Spend analyst
Before
“I spend the first week of every month rebuilding the cube instead of reading it.”
Now
Receives a refresh already reconciled to the ledger; clears unsure lines and settles disagreements between the classifier and the validator, with measured accuracy he can show audit.
HM
Helena MarshChief Procurement Officer · approves savings above $5M
Chief Procurement Officer
Before
“Show me savings finance has signed, not savings on a slide.”
Now
Sees every saving pinned to its lines and checked against its contract, and reports to the CFO from a brief that counts only what finance has banked.
RC
Ruben CastellFinance business partner, procurement · validates realised savings
Finance business partner
Before
“A saving is real when it shows up as a lower invoice, not a lower quote.”
Now
Validates or returns each realised saving against the baseline frozen on the day it was approved, price effect only, with a reason code.
ML
Mei LindqvistProcurement systems administrator · owns the tree and the thresholds
Procurement systems administrator
Before
“One tree, one set of rules, every refresh the same.”
Now
Owns the category tree, thresholds, roles and sources; every change is saved as a version and logged.
Built on the engine

7 agents. Each with one job, and hard limits.

Seven agents load, merge, classify, check and size savings; the category manager signs every rule and saving, and finance signs what is banked.

Spend loader

Pulls lines from six spend sources, converts them to US dollars at treasury month-end rates, removes intercompany lines and reconciles each source to its ledger control total.

  • Never publishes a refresh that does not reconcile within 0.1%
  • Never edits a source line
Supplier normaliser

Merges vendor records into parent companies by tax ID, registry number, ownership filings, bank account and name, and explains each merge with its evidence.

  • Never merges below 90% confidence
  • Never merges two registry numbers without a parent link
Spend classifier

Reads each line's words, supplier, ledger account, material group and card code, places it in the four-level category tree with a reason in words, and groups patterns into rules.

  • Never applies a rule a person has not accepted
  • Below 80% confidence, the line goes to a person
Validator

Draws 1,200 lines weighted by value, classifies them blind, measures accuracy on each rung of the ladder and each rule, holds rules below the 95% target and argues each disagreement.

  • Never sees the classifier's answer before its own
  • Never accepts a rule
Contract matcher

Matches lines to contracts and price lists, marks each on or off contract, and checks every saving claimed against its clause and price.

  • Never treats an expired contract as live
Opportunity agent

Looks for consolidation, off-contract buying, price variance and tail spend, sizes each saving with its method, and drafts the plan, the buyer notice and the category brief.

  • Never counts a saving the contract matcher has not confirmed
  • Never sends anything to a supplier or a buyer
Savings tracker

Freezes the baseline when a saving is approved, measures realised savings from new invoices every month and routes them to finance.

  • Never marks a saving validated; that is finance's
Category manager

Signs rules and savings; finance signs what is banked. The agents propose; a named person decides.

Ask in plain words

Ask the agents, and the ladder follows

Ask about any number, supplier, rule or saving in plain words. The agent that did the work answers, cites every figure, moves the ladder to the rung it means and offers the next step.

Why did laptops move out of office supplies?

1,284 lines name the Aster 14 G5 notebook but were coded to Office supplies (612 lines), Repairs & maintenance (301), Sundry (214) and card “electronics stores” (157). A notebook is a device, so I propose moving all $5.31M to End-user devices › Laptops under rule RL-118. The validator checked 60 of them blind and agreed on all 60. Nothing moves until you accept the rule.

Who sells us the Aster 14 G5?

Six resellers sold you 6,308 units in twelve months. Northgate, the contracted reseller, charged $1,128; the other five charged $1,196 to $1,412. Buying all 6,308 at the contract price saves $612,042 a year. The contract matcher confirmed the price and that the contract runs to 31 Mar 2027.

Show off-contract buying in IT hardware

In IT hardware, $14.6M of $118.4M went around a contract that exists: free-text requests $7.9M, cards $3.4M, and purchase orders to a supplier without a contract $3.3M. The laptops are the largest single item: $5.31M across 9 plants and 23 buyers.

How sure are you about IT hardware?

I classified 96 IT hardware lines blind, weighted by value, and agreed with the classifier on 93 (96.9%), above the 95% target. Across all spend it is 1,174 of 1,200, 97.8%. The three IT hardware disagreements wait for you to settle.

Every screen

The working solution, as it ships.

13 screens from the working solution, on its sample data. Pick one to see it large.

The conversation and the spend ladderThe agents' morning note beside the ladder from all spend to sub-category, with what the agents moved and the accuracy measured on every rung.
Supplier families on the ladderSplit by supplier: 41 vendor records collapse into 9 parent suppliers, with the normaliser's case in the thread.
Ask, and the ladder followsThe classifier explains why 1,284 laptop lines moved, cites each coding, and takes the ladder down to End-user devices.
The line behind the numberA citation opens the invoice line as it sits in the ERP, with the words the agent read highlighted.
Your monthly reviewFive steps — supplier families, rules, unsure lines, disagreements, savings — with what each agent proposes and how many wait.
One supplier family at a timeEach vendor record with its system and why it belongs — registry number, ownership filing, tax ID, bank account — and a held candidate.
Rules in wordsThe rule, its reach, the codings it replaces, the classifier's reason and the validator's sample, to accept, edit or reject.
Accuracy and disagreementsMeasured accuracy on each rung, a re-sample, and each disagreement with both agents' arguments side by side.
A saving pinned to its linesPrice by reseller, how the saving was sized, what was not counted, the contract matcher's checks and the plan the agent drafted.
Approved, baseline frozenThe approval with its reason, the frozen baseline, the plan ready to send and who validates realised savings.
From found to bankedRealised savings against their frozen baselines, waiting for finance, and what finance has validated.
The audit trailEvery agent step and every decision with its evidence, chained so nothing can be changed afterwards, exportable as an evidence pack.
Your thresholdsWhen to apply a classification, when to ask a person, the accuracy target, the sample, merges, price variance, smallest saving and tail.
Governance

Built for savings that stand up: cited, measured, signed.

Every number opens its sourceEvery figure the agents give carries a citation that opens the invoice line, the contract clause, the price-list row or the registry extract, with the words the agent read highlighted.
Owners sign every change, with a reasonRules, supplier families and savings are approved, edited or rejected by a named person with a reason code. Rules go to the category owner; savings to the category manager up to $5M and the CPO above.
Accuracy measured, not claimedA second agent classifies a value-weighted sample blind every refresh and measures each rung and each rule. A rule below the 95% target is held, with the lines it got wrong.
A saving counts only when it is checkedThe contract matcher checks every saving against its clause and price list before it counts. Only the finance business partner can validate a realised saving, against the baseline frozen on approval.
Reconciled to the ledger, or not publishedEach source is reconciled to its ledger control total, and a refresh that does not reconcile within 0.1% is not published. A late file or a failed look-up is shown plainly, with a retry.
A trail that cannot be rewrittenEvery agent step and every decision is recorded with its evidence and chained by hash, so nothing can be changed afterwards. Internal audit filters, searches and exports an evidence pack.
Configuration

Your category tree and thresholds, not ours

The tree, the confidence and accuracy thresholds and who may approve what are settings, owned by the systems administrator; every change is saved as a version and logged.

SettingDefaultChoose from
Category tree4 levels · 212 sub-categories · 864 itemsYour own tree, an owner per category, optional mapping to standard codes (UNSPSC v26); add a sub-category, save as a version
Apply a classification at92%Any confidence level, saved as a version
Send a line to a person below80%Any confidence level, saved as a version
Accuracy target (hold rules below)95%Any measured accuracy, saved as a version
Lines sampled each refresh1,200, value-weightedSample size, weighted by value
Merge suppliers at90%Any confidence level, saved as a version
Flag price variance · smallest saving shown · tail suppliers5% · $50k a year · under $25k a yearEach set separately, saved as a version
Who approvesRules: category owner (spend analyst under $250k) · Savings: category manager to $5M, CPO above · Realised savings: financeEight roles, each with its own rights to see, accept rules, approve merges and savings, validate, change settings, export and comment
Connections

Works with the systems your spend already runs through

ERPsinvoices, purchase orders and vendor masters from regional ERPs and plant ERPs
Purchase-to-pay suitecatalogues, requests and approvals
Corporate card and travel feedsstatements with merchant codes, bookings and fees
Contract repositorycontracts, clauses and price lists
Company registry and ownership dataregistry numbers, tax IDs and parent companies
Treasury and the ledgermonth-end FX rates and ledger control totals to reconcile against
What it changes

The difference, in numbers.

Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.

target
0.5%
of addressable spend found as savings in the first refresh, each pinned to its lines
target
95%+
accuracy measured on a value-weighted sample every refresh, not self-reported
97.8% measured
1,174 of 1,200 in the demo
target
Monthly
a reconciled view of spend, not a quarterly rebuild
Todayquarterly project
With agentsevery month

“demo” = seen in the working solution, on its sample spend data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (a supplier-data vendor — 10–20% duplicate vendor records before a cleanse, a vendor figure; The Hackett Group 2025, via Procurement Magazine — 60% less savings leakage for world-class teams that cut off-contract buying). People, companies, suppliers, products and amounts named on this page are fictional — characters and sample data in the working solution.

Questions

What procurement and finance teams ask us.

What is Spend Analytics?

Spend Analytics is spend analytics software that classifies and cleans all spend by category and supplier to find savings for procurement. Seven agents pull every invoice, card and travel line and reconcile each source to the ledger, merge duplicate vendor records into parent companies, place every line in your category tree with a reason in words, and pin every saving to the invoice lines behind it. Category owners sign each rule and saving, and finance signs what is banked.

How accurate is the spend classification, and how do we know?

Accuracy is measured, not self-reported. Every refresh a validator agent classifies a value-weighted sample blind — 1,200 lines in the demo — and measures agreement on every rung of the spend ladder and every rule: 97.8% across all spend and 96.9% in IT hardware in the demo. A rule below the target, 95% by default, is held with the lines it got wrong.

How does it handle duplicate vendor records?

The supplier normaliser merges vendor records into parent companies by tax ID, registry number, ownership filings, bank account and name, and shows the evidence for each record. It never merges below 90% confidence or two registry numbers without a parent link. A person approves each family, splits a record out or keeps it separate, with a reason.

Do corrections survive the next refresh?

Yes. Instead of correcting lines one by one, the classifier proposes a rule in words with its reach and the validator's sample. Once the category owner accepts it, the rule applies to every line, past and future, with the reason code recorded; it can be withdrawn from the audit trail.

How does it find savings, and stop them being overstated?

The opportunity agent looks for consolidation, off-contract buying, price variance and tail spend, and sizes each saving with its method on its own invoice lines. The contract matcher checks every saving against its clause and price list before it counts, and anything not yet negotiated is shown as not counted. Finance validates realised savings against the baseline frozen on approval.

Does it show maverick and off-contract spend?

Yes. The contract matcher marks every line on or off contract, and the solution shows spend that went around a contract that exists by channel, plant and buyer. The opportunity agent drafts the notice to the buyers; the category manager edits it and sends it.

Do people stay in control?

Yes. Nothing moves until a person accepts it: the agents propose rules, merges and savings, and named owners approve, edit or reject each with a reason code. The agents never send anything to a supplier or a buyer, and only finance can mark a saving banked. Every step is on a hash-chained audit trail.

Can we use our own category tree?

Yes. The tree is yours — four levels in the demo, 212 sub-categories and 864 items — with an owner per category and an optional mapping to standard codes. Thresholds, the sample size and approval limits are settings too, and every change is saved as a version.

How long does it take to go live?

The Agentic Solution Engine builds and deploys it from your requirements and documents — your category tree, sources, contracts and a sample of past spend — and it goes live once every quality gate has passed. We will walk you through it on twelve months of your own spend first.

See it on
your spend.

We'll run Spend Analytics on twelve months of your own invoice, card and travel lines.