Why Spend Control?
In the current business climate, aggressively increasing your company’s revenue isn’t easy. However, there are ways to increase profitability without risking your core business operation or by taking a calculated risk by increasing your sale prices. One of the best ways to decrease excess costs is by implementing an effective Spend Control system. This can lead to rapid savings for your business by:
What is Spend Control?
Spend Control involves a combination of inter-related activities. These include Procurement functions such as supplier and contract management, and Purchase-to-Pay activities from generating and authorising purchase requisitions through to purchase order placement, invoice processing and payment authorisation.
What problems does it solve?
Businesses that do not have effective Spend Control are likely to be losing money in some of the following ways:
Spend Control solutions
A Spend Control solution broadly consists of two essential components:
Although either of these components may be implemented independently, they complement each other perfectly in that the Procurement system can make supplier and catalogue information immediately available to the Purchase-to-Pay system, while the latter can provide accurate spend data to the Procurement system, thus enabling those who make the supplier engagement decisions to see the results of their efforts and negotiate even better terms with their suppliers.
A first class Spend Control system will soon prove its worth. Research by leading consultancies has shown that companies are reporting cost savings of 5-15% even in the first year after implementation.
Feel free to check out our solutions page for more details of our recommended Spend Control solutions.
For further information, or to discuss your Spend Control requirements please feel free to get in touch: