Since the beginning of the financial crisis, companies have been rapidly stripping out costs; headcount reductions have been the most typical immediate reaction to cost reductions, but companies have also become acutely aware of the potential sustainable cost savings to be had by improving the management of expenditures on direct and indirect goods and services – we call this Spend Control.
Spend Control is the process of identifying, capturing and controlling spend on purchased goods and services, with every £1 reduction in spending translating into pound-for-pound profitability improvements. Spend Control transforms disparate transactional data residing in ERP, accounts payable, general ledger, and operational databases into intelligent, actionable information and improved business processes delivering significant bottom-line benefits.
Clearly, it’s time for Finance and Procurement to shine!
To this end, PROACTIS has launched “The 3 Step Cost Reduction Challenge" that enables Finance and Procurement executives to assess if they are extracting the maximum savings from their Spend Control processes.
PROACTIS is offering some basic tips that help companies to create a business case for Spend Control initiatives and achieve the highest level performance. This includes a range of short videos and online calculators that cover all of the key elements:
- Strategic sourcing and contract management processes that ensure maximum value and cost savings
- Supplier management processes that ensure a smooth flow of goods and services while minimising any possible risk to the organisation
- Management of daily purchase activity in a way that enables staff to get what they need in a controlled environment
- Efficient invoice processing that reduces the cost of Accounts Payable operations