Addressable spend: key challenges and enabling technology Let’s quickly refresh on the key definitions. Spend for procurement can be simplified as: Total spend: This is the total spend, both internal and external purchases, relevant to the procurement organization including salaries, taxes, etcetera. Addressable spend: This is the portion of spend that the procurement teams can…
Using A.I. to verify & improve your spend framework and accuracy The Challenges Businesses Face For any-size organization with the intention to manage and orchestrate their spend, the very fundamentals are access to those spend and a framework (classification) to associate the spend to. We are all aware of challenges on data-access but today want…
Finding & acting upon supplier relationships:challenges and opportunities Procurement is an information game. The more and better-informed teams are, better decisions, faster response time and more efficient the organization will be in delivering value to the business. Identifying relationships across your supplier base and acting upon the identified relationships is an important element which derives…
Tail spend: Use Case – Unexpected Insights & Takeaways There are many articles written on tail spend, on the importance of visibility from a compliance and risk perspective as well as on the value that procurement teams leave untouched. We agree with all the above and want to share our takeaways from a recent project…
Integrate silos of spend without hassle Procurement organizations miss supplier consolidations, contract negotiations, or value generating opportunities (i.e., “spend synergies”) due to the complexity (time, dependencies, and resources) and associated costs of capturing, comparing, and integrating new spend data into existing spend cubes. According to Ernst and Young (EY), both finance and procurement leaders…
