Be careful of spend cubes, unless you want to spend a lot of money and maybe not get what you are looking for.
Todays post is an oldie but goodie from Ron Southard CEO at SafeSourcing.
And it’s still true today.
The rest of the Little Jack Horner spend cube analogy might go like this. He stuck in his thumb and pulled out a peach and said what the heck is a peach doing in a plumb pie?
If you look to Wikipedia, there is no definition of a spend cube. You can find information relative to spend cubes in a discussion about spend analysis. However t the original discussion we are talking about data in this case multi-dimensional data about spend information. Consultants love to talk about it because it allows them to charge you a lot of money without necessarily delivering any results other than, well a spend cube.
Quite frankly you are going to hear terms like data model, data warehouse, data scrubbing, data cleansing, data access, data sources and incomplete data. All of which allow consultants to charge you more money in order to develop yours from what is likely incomplete data kept in many places like GL’s, ERP systems and the like.
Once you get your model or cube, I promise you additional discovery is going to be required in order to determine what categories or products should go to market. One category manager’s category is another category mangers product. So now what?
Don’t get confused by consultants touting their spend cube analysis software because if you do, you will be in for a dime in for a dollar and continue to get peaches when you are looking for plumbs.