By Mickey North Rizza | November 19, 2015
Spend Matters: The discipline of managing supplier spend is core to the mission of any procurement organization. After all, what good are the hours spent on negotiating and locking in the best possible price for goods and services if, at the end of the fiscal year, the budget has been blown?
For years, spend analysis technologies have played a critical role in ensuring that what’s been budgeted is what has been spent. Now, we’re seeing sophisticated organizations moving beyond using spend analytics as a tool for controlling costs and employing the solutions to uncover new opportunities to improve performance throughout the supplier lifecycle.
Moving beyond the opportunistic model where the system would flag a spend line that represented savings captures, savvy procurement and supplier management teams are taking bold steps to unlock the power of spend analysis. Using a strategic and disciplined approach that turns data into insight and visibility, these leaders are accelerating world-class spend and supplier management. There’s definitely some upfront work, but the benefits make the effort well worth it.