A sure way to lose control of procurement is the failure to manage Free-Text Spend. Uncontrolled Free-Text Spend increases the expense of acquiring parts, returning incorrect parts, and delaying planned maintenance while waiting for the correct parts. When operations uses unstructured and incomplete descriptions, it places a burden up and down the supply chain.
- The buyer must interpret the description and may release the purchase order to a random supplier
- The supplier attempts to validate the correct part based on incorrect or incomplete data and send the incorrect part
- Sourcing analysts have no clue what spend category the part falls under, so the purchase is eliminated from the analysis
By using tools such as the web-based Structured Text Generator from PiLog, a more complete and structured description can solve all these issues and more. By selecting a template as a starting point, based on PiLog’s extensive industry technical dictionary content, the required fields are provided to the operations personnel requiring parts. The buyer, supplier, and sourcing analyst all get the data they need and unwarranted Free-Text Spend is eliminated.