Importance of Spend Management
ERP, CRM, HCM. Every modern business needs to be well-versed in the three letter acronyms of technology, and yours is no different. However, after you’ve implemented an ERP, where to next to ensure that you retain the competitive advantage your business needs? Supply Chain Partner – or, as we like to call ourselves, SCP – has the next three letter acronym for you: BSM, or Business spend management. Spend management is a crucial enabler in propelling your business into the future. But what is business spend management exactly? As experts in spend management tools and implementation, we have all the information you need right here, in this quick and easy guide to business spend management.
What is Business Spend Management?
Business spend management is a comprehensive, integrated system of processes that track your non-payroll spend across the entirety of your business. Supported by software, this spend management system also includes tools that initiate, control, and optimize this spend. Gone are the days when this was – by necessity – a manual practice; in today’s fast-moving, data-driven world, the process can be automated. The process includes procurement, inventory management, advanced sourcing, budgeting, analytics, and the management of invoices, contract lifecycles, supplier information, and employee expenses. Having your business’s spend management compiled into a single dashboard can drastically improve the accuracy and efficacy of your decisions on how and where to spend money. The ability to see where every cent is going at any time can give you the insights you need to make calculated, strategic decisions that drive your business forward.
Business spend management can assist in your supplier relationship management and, with a tool like Coupa, can integrate seamlessly into your procurement management systems and sales and ops management software. Storing data across your procurement processes allows you to view, analyze, and optimize the way that you procure goods and services for your business. A spend management tool handles all of these operations, and presents the analytics to you on a digestible and intuitive dashboard, allowing you to make rapid and accurate decisions on your business spend.
How Does Business Spend Management Work?
A BSM tool, like Coupa, digitally tracks all of your business’s spend across departments. This can quickly and easily identify areas of overspend, and ensure that amounts are reported on correctly on financial statements. Spend management can be used in a variety of ways, but is most commonly seen in procurement and finance.. With all of your spend records in one system, even siloed spend can be analyzed from a single dashboard – one that is always at your fingertips. Together with enterprise resource planning, customer relationship management, and human capital management, business spend management helps you to record, track, and supervise the fundamental operations of your business. At SCP, we have the solutions and the expertise to help you implement a business spend management platform that is perfect for you.
Importance of Business Spend Management
Just as cloud-based software has seen massive mainstream adoption and growth, so has the importance of digitizing manual processes. The pandemic has exposed many disconnected, inefficient processes of recording and tracking spend, and has clearly shown the need for a single, digital business spend management solution. The data that reflects how you spend your money is found in a wide array of places, extending through all of your systems, making your spend nigh impossible to track without an integrated spend management tool. These spend management tools provide you with the information you need to eliminate excess spend across your business, and prepare your company for expansion and growth. The cloud-based nature of a modern business spend management tool means that the use of machine learning and AI can give you a great advantage against your competitors.