Spend management overview
Spend management is the way world-class companies control and optimise the money they spend by cutting operating and other costs associated with doing business. Spend management provides visionaries with distinct advantages over their competitors by achieving total cost management, long term sustainable savings, valuable spending assessments and an increase in procurement efficiency.
Spend management helps organisations achieve increased earnings, by protecting operating profit and with the savings generated, provide more capital to reinvest in the company, its technologies, and future growth.
Best-in-class organisations realise that spend management can help them achieve strategic goals, by protecting corporate operating profits, through the gaining of control over where money is spent across the business.
Best in class enterprises, on average:
- place 26% more spend under management than all other enterprises
- have 25% less maverick spend than all other firms
- report a requisition-to-order processing cost that is 33% lower than all other enterprises and a requisition-to-order cycle time that is 61% lower than other firms - Aberdeen Group *
Spend management allows financial officers to become high-performers in savings by getting spend under management in all of the company’s profit and cost centres. The savings that result from increased spend visibility, positively impact the company’s overall financial performance.
By deploying spend management solutions, enterprises will:
- improve the bottom-line by decreasing savings leakage and maverick spend
- increase spend under management
- reduce requisition-to-order cycle cost and time by automating workflow - Aberdeen Group *
* Aberdeen Group is the leading provider of fact-based research focused on the global technology-driven value chain. Aberdeen has established the market leading position as the “voice that matters” when it comes to understanding the measurable results being delivered by technology in business.