The percentage of total spend that is actively managed by procurement, including contracts, purchase orders, and supplier relationships.
As businesses expand, it becomes increasingly difficult to manage expenses. In such a scenario, organizations need a strategic approach to monitor their spending and ensure that they are not wasting resources. One way to do this is by tracking the key performance indicator (KPI) of Spend Under Management. In this article, we’ll explore the meaning and actionable insights that can be obtained by tracking this KPI.
The Secret to Managing Spend Like a Pro!
Spend Under Management is a KPI that measures the percentage of a company’s total spend that is actively managed by procurement. This includes contracts, purchase orders, and supplier relationships. By tracking this KPI, procurement teams can identify areas where they need to focus their efforts to generate savings for the business.
To manage spend like a pro, businesses need to take a strategic approach to procurement. They need to align their procurement strategy with their overall business objectives, identify opportunities for cost savings, and develop a procurement plan that outlines how they will achieve their goals.
By tracking Spend Under Management, businesses can gain a deeper understanding of their procurement processes and identify areas where they can make improvements. For example, if a large percentage of spend is not being actively managed, this could indicate that procurement teams need to be more proactive in their approach to supplier management.
Discover the Perks of Tracking Spend Under Management!
Tracking Spend Under Management offers several perks for businesses. Firstly, it allows them to identify areas where they can generate cost savings. By actively managing contracts, purchase orders, and supplier relationships, businesses can negotiate better deals and reduce their overall spend.
Secondly, tracking Spend Under Management can help businesses to identify areas where they can improve their procurement processes. For example, if a large percentage of spend is not being actively managed, this could indicate that procurement teams need to improve their communication with suppliers or implement new processes to improve efficiency.
Thirdly, tracking Spend Under Management can help businesses to manage risk. By actively monitoring their spend, businesses can identify potential risks and take steps to mitigate them. For example, if a supplier is not meeting their contractual obligations, procurement teams can take action to address the issue before it becomes a bigger problem.
In conclusion, tracking Spend Under Management is essential for businesses that want to manage their spend like a pro. By actively managing contracts, purchase orders, and supplier relationships, businesses can generate cost savings, improve their procurement processes, and manage risk. So, start tracking this KPI today and discover the benefits for your business!