Channel spend through intelligent procurement technology
The first principle of Spend Under Management (SUM) recommends using technology to improve transparency and drive efficiencies through automation,
as well as enabling tighter control of process and policy, and capturing and interpreting critical spend data across the organization.
2
Purchase through a formalized requisition process
To effectively manage spend, an organization should aim to flow 100% of spend through a controlled process governed by complete and universally enforced policies and procedures.
It is crucial to ensure adherence to these policies and procedures, with all spend areas incorporated and reinforced through workflows and business practices.
A procurement platform that can accommodate the differences in requirements by category and/or region can enable secure data access, simplify and streamline the
decision-making process, and ensure that forecasting and decision-making is based on best practices and informed by data through spend analysis, not intuition.
3
Source in a competitive environment
Sourcing in a competitive environment can benefit a business by providing the best value for the dollar, improving efficiency, and reducing costs. However, maximizing the business
value of sourcing can vary significantly based on category, region, and end customer needs. eSourcing solutions are emerging as a fixture in the procurement sector, with more companies utilizing these tools to
drive cost efficiency and provide the right level of visibility into procurement spend. With the right solution, businesses can better understand their complex purchase mix,
expose additional discounts and competitive deals, and automate sourcing activities to optimize outcomes.
4
Ensure contracts are in place and used across all spend
Effective contract management is crucial to reducing risk, achieving efficiency, and managing supplier partnerships. Around 70-90 percent of spend should flow through contracts or pre-negotiated catalogs.
However, not all procurement teams may have the skills or knowledge to proactively manage contracts, and there may be leakage or maverick spending that bypasses defined processes.
A contract management platform can provide visibility into agreements, project milestones, & performance metrics, enabling more efficient acquisition &dynamic agreements based on real-time data.
5
Provide closed-loop metrics and management
A closed-loop performance management system allows for action to be taken on monitored performance, linking cost savings targets to financial objectives of a business through the
use of robust spend analytics tools, to impact core business metrics. This system is designed to provide access to the necessary information to achieve desired outcomes.
SCHEDULE A DEMO to see how Simfoni's intelligent spend management platform can give you greater visibility into your spend and an increased bottom line.