Uncovering areas where procurement spend management can be used to your business’ advantage.
In the most simple terms, Spend Management is the manner in which a business controls and optimizes the money it spends. Consider it an optimal best practice that eventually leads to an array of procurement benefits for your business. From strategic eSourcing to supplier selection to contract management and payment – it circumscribes the entire purchase lifecycle. Providing a comprehensive view of all the relevant processes of all the organization’s spend categories, it helps in building improved processes and strengthens control over the risks and spend habits of the organization. Compiled here are 7 ways Purchasing Platform can help you cash in on procurement spend management to your business’ advantage –
- Under One Umbrella
Diligent eProcurement software like Purchasing Platform is a P2P eMarketplace that gives you the ability to control your expenses organization-wide that ultimately help in bringing down your costs and increases procurement efficiency, rendering your business immune to expansion or acquisition-related adversities.
- Negotiate Like A Pro
The data provided by procurement spend management software and procurement software will enable you to make knowledgeable and educated purchase decisions. Sharing knowledge of market conditions and commodity pricing trends will help your departments to be better armed for negotiations with their suppliers. This can be achieved with the help of B2B marketplace purchasing management software like Purchasing Platform.
- Tap the Leadership Capital
Effective procurement spend management calls for getting the management and leadership teams of your business onboard. A clear understanding and implementation of the procurement spend management program by the leadership about buying decisions and supplier relationship goes a long way in reducing purchase expenses.
- Supplier Assessment
Regular supplier audits through the eProcurement suite can ensure that your contracts and invoices are competitively placed according to the current market conditions, thereby increasing your negotiating power. This way you can also keep a watchful eye on long-term contracts.
- Focus On Indirect Spend Habits
Procurement software solutions such as Purchasing Platform also help in paying attention to optimization of indirect spend such as maintenance, repair, and operations supplies and services. This is another area that can be managed more efficiently with procurement spend management eProcurement solutions as it gives you enhanced organization-wide purchasing power.
- Centralization to the Rescue
Procurement spend management is most effective in a centrally strategized procurement system giving better control and uniformity in purchase decisions to you.
- Monitor Your Tail Spend
Focusing on the expenses not actively managed under the spend categories will have a significant effect on your financial figures and performance. . Curb maverick spending by closely watching your business’ procurement processes with features such as catalog management and expense reports.