Vendor Normalization
Vendor Normalization is an automated data cleansing process that resolves inconsistencies in supplier names. By consolidating redundant entries into a single profile, SpendCraft provides a clear and accurate view of your total spend per vendor.
Raw financial data is often "messy" because different systems and regions record the same supplier in multiple ways. Without normalization, these are treated as separate entities, causing data fragmentation.
| Raw Transaction Record | The Issue | Result |
|---|---|---|
| Microsoft | Legal entity variations | Spend Fragmentation |
| Microsoft Corp | Nicknames or abbreviations | Inability to see the |
| M S F T | Typos and casing errors | total global spend. |
🤖 The AI-Powered Process
SpendCraft uses machine learning to execute normalization in three automated steps:
1. Cleansing & De-duplication
The system strips non-essential text (e.g., Inc., LLC, Co.) and standardizes formatting. It uses pattern recognition to identify matches, such as linking "Federal Express" to "FedEx."
2. Parenting
The AI automatically groups all identified variations (Child Vendors) under a single, canonical Parent Vendor Name.
3. User Review & Learning
The system flags "Medium" or "Low" confidence matches for your review. When you manually merge or correct an outlier, the AI uses that feedback for Continuous Learning, improving accuracy for all future datasets.
📈 Key Benefits
- True Spend Visibility: Consolidate spend under the correct parent company for a defensible view of total expenditure.
- Negotiating Leverage: Use your aggregate volume as a powerful tool to secure better pricing and contract terms.
- Supplier Consolidation: Identify "spend leakage" where too many suppliers are used for the same service, highlighting opportunities for consolidation.