Spend Management, Procurement, Transformation
Spend management: transforming your mid-market business to improve profitability
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Getting spend under control — companywide
Economic conditions and fierce competition are forcing many midsize businesses to find new ways to reduce costs, fund business growth and enhance profitability and cash flow. The CEOs, COOs and CFOs of these companies feel enormous pressure to improve procurement and sourcing effectiveness, but resource constraints — specifically, lack of strategic procurement expertise and the technologies to support it — make this a difficult goal to achieve.
In fact, many midsize companies are not organized to effectively control spending through indirect materials and services procurement. Few of them, in fact, truly understand how much they actually spend on products and suppliers. The reduced cost savings arising from this lack of visibility can bring down a company’s bottom line and lower earnings per share. It should be no surprise, then, that a growing number of midsize companies are seeking new solutions and resources that can help deliver more responsive and effective procurement.
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Spend management in perspective
In recent years, spend management — a major new business strategy — has emerged to help businesses achieve two key strategic goals. First, spend management helps to increase earnings per share to protect operating profit. Second, the savings it generates frees up money to reinvest in the company, its technologies and future growth. These benefits are achieved by deploying procurement and business transformation initiatives that bring the cost of spend management down within the reach of most midsize businesses.
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