LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the successful strategies to improve indirect spend management.
Most companies often focus their efforts on direct spend categories and lack visibility into their direct spend categories. They overlook the fact that indirect spend makes up a high proportion of their third party spend. However, indirect spend management is gaining traction due to its ability to derive more value from the supplier spend. Companies are taking control over the indirect spend and creating more savings opportunities from small expenditures that are impacting the company’s bottom line.
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SpendEdge identifies business needs and helps organizations reduce the cost of procurement processes using their tested indirect spend management methodologies. They design efficient strategies that help enterprises recognize savings in indirect spend categories.
Ways to Improve Indirect Spend Management
Establish a set of metrics
Establishing a set of metrics is one of the most important step companies need to adopt to improve indirect spend management. They must put an evaluation method and track indirect suppliers. They should create simple KPIs to measure contract compliance, quality, and cost competitiveness. Also, data should be made available to all stakeholders and departments for better decision making.
Want to know how creating KPIs can help companies to measure cost competitiveness across indirect spend categories? Reach out to our experts for specific insights.
Consolidate indirect spend into specific categories
Often employees are not involved while developing a category policy. They order supplies without any regard for potential savings. Engaging employees in the process can help companies to consolidate purchases, implement company-wide contracts, and reap benefits such as volume discounts and favorable contract terms.
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Improve spend visibility
Poor spend visibility can lead to missed opportunities for savings and increase the risks of fraud manifolds. Companies must leverage technologies to gain real-time visibility into all transactions. They should track everything from invoices to the performance of suppliers for better decision-making.
To know in detail about strategies to improve indirect spend management, request for more information from our experts now!
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