10 October 2019
Purchasing fitness: reduce costs with spend visibility tools
A recent survey by the Economist Intelligence Unit has found that financial managers often complain of a lack of spending visibility.
The result is a difficulty in correctly addressing cost reduction initiatives.
The introduction of a modern and innovative tool for spending visibility makes advanced methods for the analysis and management of expenditure accessible to medium-size companies, while once could only be accessed by large companies and multinationals.
Efficient spend visibility tools are designed and implemented to ensure a rapid return on investment by generating real savings.
At the base there is a system of classification of costs by nature recognized worldwide, because:
– is functional to the offer documentation preparation
– facilitates the exchange of information between suppliers and customers and between different plants, even located in different countries or continents
– regardless of local or geographical influences, traditions and habits.
The dashboards facilitate the identification of savings potential and the monitoring of the results obtained.
What benefits can I expect from a spend visibility tool?
– Centralized view for the headquarter
– Unique and easy to use tool (no specific BI skills required)
– Data quality
– Use of all information collected from the sources
– Efficient improvement of operating times
– Effective decision-making and concrete opportunities for savings.
How to understand if my company is suitable for a cost reduction project supported by a spend visibility tool?
A series of questions help us do this:
– do you miss a centralized view of overall spending?
– do you have to invest too much time to collect updated data and often from diversified sources (eg ERP or other …)?
– Most of the data in your possession are not structured (eg descriptions) and therefore you cannot analyze them and classify them automatically?
– Can’t you plan effective actions to reduce spending, because you don’t have adequately aggregated data (eg: expense category, supplier, organization)?
– Do you miss a clear view of the breakdown by cost centres (eg organizations, areas, country …)?
– Are your available general tools complex and needing strong specific know-how (eg: creating reports and dashboards)?
If you answered at least two “Yes”, associating a spend visibility tool with a cost reduction project allows you to maximize efficiency and savings.
To learn more about the possible cost reduction possibilities with a spend visibility tool, a free check-up is available: to request it, send an email to firstname.lastname@example.org indicating the code V01 in the subject.