A dynamic process
Conversations with procurement and finance executives around the globe over the past several months indicate that companies have focused their efforts on reducing costs, accelerating their return on investment (ROI), and improving efficiencies. Some are adopting tactics like closing manufacturing plants and laying off workers, which are static, short-term reactions to periods of slowing demand and volatile market conditions.
Spend management, by contrast, provides a continuous, dynamic process for meeting an organization's changing business requirements. A formal spend management strategy lets companies more efficiently analyze opportunities for savings, identify opportunities to choose the right suppliers, enter into favorable contracts, monitor compliance, and evaluate supplier performance in relation to an organization's long-term objectives.