How do I know if I have enough spend detail?
That's a question that comes up often in the early stages of a spend analysis. On this week's episode of the Source One Podcast. Spend Analysis Lead Brian Seipel suggests a more constructive question might be, "how do I know if I have too much."
When it comes to granularity, Seipel suggests, "less really is more." Just because an organization can collect massive amounts of data doesn't mean the exercise is productive. Seipel suggests looking at a spend analysis like a map. "Consider the topographical map," he says. Though it offers a considerable level of detail, it's not at all useful for something like navigating from one city to another.
Spend granularity isn't so different. There's a time and a place for detail, but the early stages of an analysis is neither. Siepel concludes by suggesting that detail-oriented dives into spend are better suited to sourcing events.
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