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FEB 2021

OEM Parentage + Reseller Purchasing = TruSpend™ with your Vendors

Fellow InCighters,

Original Equipment Manufacturers (OEMs) have multiple business units, product lines, and distribution channels which precludes financial reporting systems from aggregating spend accurately and completely. As a result, Procurement, Finance, and IT organizations lack a centralized, automated view of spend. Incomplete and inaccurate spend greatly reduces negotiating leverage and impacts strategic vendor management.

CIO InCight® identifies a vendor’s total spend, all divisions and subsidiaries, and whether purchases are made direct or through a reseller. CXO Nexus provides leverage to strategically reduce expenses and consolidate suppliers.

OEM spend cannot be determined using traditional financial reporting software. OEMs have multiple business units with separate billing processes, and when purchasing is done through resellers in-place financial systems are unable to assign the spend to an OEM.  Companies must then resort to the painstaking and expensive effort of generating manual static reports, time that would be better spent acting on the data rather than creating it.

CXO Nexus InCight enables clients to allocate resources into what counts; strategic vendor management.

CIO InCight provides companies the ability to identify the total spend up to a parent organization by querying their AI & ML based Augmented Data. Even if purchased through a reseller or outside of the technology organization access to the total spend is seamless.

Example

The example below highlights spend with Dell Technologies by division, subsidiary, and how purchased (direct or via reseller) derived from querying the Augmented Data created by the CIO InCight AI & ML engine. It is the go-to source for automated, repeatable visibility into vendor spend – no FTEs required and compatible with all financial systems.

CIO InCight captured the full $51.5M of spend which strengthened negotiation leverage with Dell Technologies and its myriad of resellers which facilitated supplier consolidation.

Prior to engaging CXO Nexus the client queried their AP system and could only get line of sight on direct spend with Dell for $4.3M. The Dell EMC, VMware and Secureworks spend was not identified and none of the $39M+ of reseller spend was included. As a last resort they had to ask Dell what they had spent... where is the leverage in that?

Use Case:

In this clip, NASDAQ discusses how the "OEM Parentage: Know The True Spend" enabled by CIO InCight aids in identifying total spend for large and complex global vendors.

Have questions?

We can help you in researching specific vendor spend. Send an e-mail to support to request assistance from a Customer Success representative.

If you have issues signing in contact us at support@cxonexus.com.

Best,
Leif

 

Leif Easterson
Global Head Customer Success
LEasterson@cxonexus.com

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