Tapping the Value in Spend Management
Assessing management processes to control costs
From outsourcing to travel, medical benefits to equipment, external spend is a significant part of most companies’ costs. Efforts to reduce external spend have taken a variety of forms over the past several years, most focusing on procurement-based initiatives such as strategic sourcing, e-procurement, B2B exchanges or reverse auctions.
While these initiatives may have resulted in large potential cost savings, executives often found that they didn’t address the need for sustained savings that track to the bottom line. Costs quickly crept back, leaving companies to start the process all over again. The problem? These procurement initiatives didn’t address the management processes required to truly control costs. To achieve lasting cost savings, companies must address a variety of elements – strategy, process, technology, organization, sourcing and performance measures – in an integrated approach called spend management.
Read about some of the key lessons that we've learned on how to drive more value through spend management.