Managing business spend is very important for organizations that mainly deal with purchasing and procurement. From selecting suppliers to set up contracts, businesses should have a holistic view of procurement enterprise-wide. Spend management goes beyond procurement requiring business units and finance departments to align around spend categories.
Getting a comprehensive view on relevant processes across organizations spend categories will help you focus on process improvements and cost savings, providing greater control over spending. Spend management helps businesses control and optimize the money they are spending.
The following are some of the best ways through which your department can start leveraging spend management.
Aggregate Expenses Enterprise-Wide
Expenses may vary from business to business. Aggregating all business expenses together will help you understand how much you are spending in various areas. By bringing all expenses onto the same page, you can see the benefits of spend management. This is the best practice for reducing costs and increasing purchasing efficiencies.
Effective spend management goes beyond making better purchase decisions. Educating employees on a company-wide basis can help buyers tap into the benefit of corporate discounts. Get to know the in and out of the buying process and share the information with other purchasing departments so that you can get better discounts. Purchasing decisions and interactions with suppliers should be distributed across business units.
Periodic Supplier Audits
This is again good spend management strategy that helps businesses keep tabs on long-term contracts and supplier relationships. Reviewing top expense categories on a regular basis can help you compare current market price with the accounts payable departments so that you can ensure all contracts, invoices, and remittances are in line with negotiated pricing and terms.
Effective spend management starts with centralizing the data for every purchase across departments. Centralization makes data accessible to authorized persons at any point so that they can make purchasing decisions without any delays. Also, centralization ensures better visibility, transparency, and improved communications across the organization.
Spend management software such as SutiSpend can help manage your business spending efficiently while assuring maximum visibility across your every business area.
Schedule a live demo today to learn how Spend Management Platform can help streamline your business.