Spend is fraught with characteristics that render traditional sourcing approaches ineffective. Poor data visibility, low volume, time sensitivity, unique and often unstable specifications — just to name a few. And what’s more, apart from the natural dearth of contracted suppliers, non-compliance and maverick buying often lurk here.
In contrast to abstruse conceptual and theoretical frameworks, We bring field-tested methodologies to bear on spend. Our approach is iterative and leverages our strategic sourcing, transaction management capabilities, and tools, to deliver “simple, smart, sustainable” results.
IMPROVE SPEND VISIBILITY
Spend that can’t be seen can’t be factored into data analysis, used for forecasting or reporting, and erodes your bottom line through both maverick spend and missed opportunities to save via direct discounts and economies of scale. Implementing a comprehensive spend management solution renders all company spending—direct and indirect—utterly transparent.
Centralized mdm connects transaction information across departments, feeding into not just purchasing processes such as spend analysis, contract management, building supplier relationships, and refining spend categories, but advanced data analytics, financial planning and marketing.
Indirect spend management is particularly improved, and with automation handling every step of the approval process from request to approval to purchase and payment, your total approval workflow is faster, more efficient, and more accurate.
Supply chain management is improved as well, since vendors are vetted and approved within the system, and approved buyers are presented with a catalog of pre-approved options for goods and services—a catalog that automatically factors in negotiated pricing, available discounts, preferred vendors, and current quantities of items on hand. Economies of scale come into play as vendor lists are pared down and contracts are negotiated for the entire organization, rather than using a wide array of vendors scattered across all locations.
CONTINOUS REACTIVE PROCESS IMPROVEMENT
Even the savviest CPO knows there’s always room for improvement when it comes to purchasing. With spend management, process improvement results from real-time visibility into internal performance in all stages of procurement. Transparent and collaborative relationships with suppliers make it easier for Accounts Payable to take advantage of on-time or early payment discounts, freeing up cash flow. Automated invoice processing streamlines internal workflow to reduce exceptions, guarantee shared compliance with contractual obligations, and provide instant, triple-checked verification for purchase orders, invoices, and shipping documents.
Of particular interest are spend categories, which can be refined, analyzed, and then further refined as you develop an ongoing database of usage and total spend for each specific area. This not only allows for more nuanced strategic spending, but allows for more granulated supplier management and greatly enhanced cost reductions.
Process improvement also reduces the need for extra staff and frees existing staff from lower-level, time-consuming tasks. This means your team members will have more time to focus on strategy and high-level functions instead of chasing exceptions and other headaches.
One of the most powerful items in the spend management toolkit is automation. It inherently reduces risk by removing human error from the equation. But spend management systems also allow you to improve risk management through detailed, data-driven analysis of contracts, vendor performance, and current market trends to identify areas of vulnerability—and opportunity. Bringing suppliers into the system not only simplifies the evaluation and negotiation processes, but provides real-time monitoring to ensure compliance. This visibility gives you the continuously-updated information you need to recruit, replace, or rehabilitate vendors based on key performance indicators (KPIs) focused on compliance, customer service, and shared initiatives.
In addition, contract management is continuously improved through total information transparency, data analytics that allow for smarter negotiations and strategic sourcing partnerships, and optimal compliance through centralized, searchable storage. The result? Negotiations that use hard data to identify opportunities for expansion, consolidation, and optimal pricing while sharply curtailing your risk exposure due to non-compliance.
Centralized spend management also reduces financial risk by providing accurate data for financial forecasting and reporting, along with an easily traced audit trail.
MOBILE FRIENDLY PLATFORM VERSATILITY
Whether they’re in the local office or three time zones away, stakeholders need real-time and complete access to procurement and other data via not just computers, but mobile devices. Our spend management solution leverages a centralized data repository to make not just raw data, but advanced, analytics-driven reporting, digital dashboards, and daily tasks like requests and approvals available 24/7 on tablets, phones, and other devices. This flexibility results in faster decisions, nimble planning, and shorter procurement cycles across the board.
Mobile-friendliness also supports your company’s broader IT priorities. Intelligent processes and mobile access reduce strain on hardware and remove the need for multiple expensive setups for staff, and one centralized system makes training simpler and less expensive since users are trained on a single interface instead of a variety of applications.