Over the course of the past year, organizations across the globe have faced unprecedented economic challenges. The impact of the systematic collapse of the banking industry has been felt worldwide. Even China, the global leader in manufacturing, is reporting a rapidly deteriorating economic situation; Chinese factories are scaling down production to combat the rising inventories that their customers are now carrying due to reduced consumer demand. But China is not alone. Enterprises across the globe are taking steps to ward off financial distress and ride out the economic turbulence.
No one, of course, is happy about the pain caused by the global recession, yet there may be a positive side to the current situation. Companies now have an opportunity to go beyond simple cost cutting and realign to improve their spend management practices— that is, the methods by which they control the money they spend and manage the activities associated with external purchases. By doing so, they can achieve sustainable savings that can not only help them weather today's economic storm but also ensure the health of their businesses long after the recession ends.