The importance of spend management in accelerating businesses
Procurement has always been a critical business function for enterprises, and over the past couple of decades, it has evolved to become a digital technology–driven process. One of the most pressing problems is that despite technological advancements and relatively smarter processes, the procurement function still faces certain challenges that it did a decade ago.
With digital enhancement and transformation at the core of this function, the importance of spend management in the supply chain cannot be underlined enough. Controlling and maintaining a tab on spend is becoming more complex as businesses grapple with operational inefficiencies, increasing cost of operations, and common cash flow problems.
Understanding the importance of spend management
The idea behind having an optimised spend management process is to maximise value from the organisational spend while ensuring low costs, minimal financial risk, streamlined cash flow, and better business–supplier relationships.
A study reported that 61% of the respondents admitted to using scattered tools and disparate processes to manage their business spending. Managing spend strategically is key to ensuring that every dollar is accounted for and spent precisely where it is supposed to deliver the best returns.
As is evident from the concept of spend management, it is rather tedious and quite impossible to achieve an efficient process when managed manually. This is the primary reason why more and more enterprises are opting to take the digital route to achieve a streamlined and effective spend management process through automation.*
Since spend management helps you control procurement costs, a comprehensive spend management strategy that blends real-time analytics with human intelligence could result in the following benefits:
- Elimination of manually intensive processes that consume invaluable resources
- Better sourcing opportunities through high-value supplier identification
- Improved spend visibility through accurate data analysis and trends forecasting
- Reduction in maverick spend and greater cost-saving opportunities
Leveraging the capabilities of an integrated spend management and procurement solution can help enterprises realign their priorities and make informed, strategic decisions that benefit the business function and eliminate risks.
How can modern enterprises transform their spend management process?
To achieve spend management success at scale, being in control of your numbers is paramount. Knowing what factors or KPIs need to be looked at is a major challenge for most companies and business leaders. For progressive businesses, this means investing in a solution that enables you to achieve the following:
- See, analyse, and make sense of all your past and current expenditures
- View and visualise detailed purchase category analyses
- Identify key areas where you can reduce costs
- Recognise opportunities to increase profitability
- Find gaps and improvement areas in the consolidated procurement process
End-to-end visibility in the procurement process and spend management is the ultimate goal, which will subsequently lead to smarter decision-making. For businesses, finding and deploying a spend intelligence solution is indispensable today’s marketplace.
How can Infosys BPM ProcureEdge help?
With an enterprise-grade, AI-powered spend intelligence offering, Infosys BPM is committed to helping future-looking enterprises in their journey towards holistic digital transformation from a business spend management perspective. Designed to augment your organisation’s procurement process, the ProcureEdge platform helps you overcome key business challenges in spend management with AI-enabled data management, spend classification, and opportunity identification.
As an end-to-end business process management expert, Infosys BPM frees up your IT department from managing your spend operations by offering features such as:
- Data ingestion
- Spend classification
- Opportunity identification
Learn how your organisation can navigate its next with Infosys BPM ProcureEdge.
*For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed on organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like a living organism, will be imperative for business excellence going forward. A comprehensive, yet modular suite of services is doing exactly that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.