With strong revenue growth remaining elusive for many companies, businesses are taking a hard look at their spending to increase profit margins and net income. Poor spend visibility makes it difficult for businesses to effectively control costs, ensure budget compliance and eliminate maverick spending, negotiate with suppliers, comply with contracts, and achieve competitive advantage.
Thirty-percent of senior finance executives would like their organization to be more focused on analyzing spending, Oxford Economics reports. Forty-eight percent of those surveyed say that percent of total spend under management is a valuable metric to their organization.
But spend management remains elusive for many businesses, largely because manual or semi-automated payables systems make it difficult to access critical spending information such as:
- Invoice amounts and volume
- Enterprise spend and trends
- Category spend
- Supplier spend ratios
- Budget variances
This is not the case in companies using fully automated accounts payable systems.
Fully automated accounts payable systems provide insights into category and supplier spending, budget variances and “maverick” spending, order-cycle times, and the number of transactions that are processed straight-through (without human intervention). These insights reveal spending and patterns and arm a company’s sourcing team with deep information for future negotiations.
Managers can use these insights to address overspending quickly.
All of this helps businesses better manage spending, reduce the cost of goods, ensure contract compliance, and strengthen their supply chain for competitive advantage.
Is spend management a priority for your organization? If so, contact us…