 Spend Management Spend management is the way in which companies control and optimize the money they spend. It involves cutting operating and other costs associated with doing business. These costs typically show up as "operating costs" or SG&A (Selling, General and Administrative) costs, but can also be found in other areas and in other members of the supply chain. Whether it is the money spent on goods or services for direct inputs (raw goods and materials used in the manufacture of products), indirect material (office supplies and other expenses that do not go into a finished product), or services (temporary and contract labor, print services, etc.), a company needs a mechanism by which they are not only able to save money but control costs. DocumentsDate added
Imagine that the CEO just gave you the edict to:
"find internal sources of value that can translate into bottom line benefits over the next five years". Because of the company's growth, you know there are opporutnities in procurement that just might deliver what the CEO wants.
This paper, written by UPS, will explore the opportunities and present a recommended approach for developing a strategic sourcing program.
While enterprises are clearly able to recognize and communicate the benefits of utilizing spend analysis technology, they have not yet bridged the gap to action. Sixty percent of organizations currently rely on manual tools to collect and analyze spend data, resulting in limited spend visibility and the inability to improve cost savings.
Written by leaders in the field, Spend Analysis: The Window into Strategic Sourcing is the only reference to provide in-depth guidance on what spend analysis really is, what it specifically involves, and how it can be used to improve identification of cost reduction opportunities, prioritization of sourcing projects, negotiated results, and the tracking and monitoring needed to ensure that identified opportunities reach the bottom line.
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