What is Spend Management?
The Strategic Source approach to maximize your spending.
We review your spending by category and discover which category can be rectified quickly, and which category will take further examination. We look at which categories need more attention and which have the most complex cost plan solutions. From there, we compare these expense categories to our annual reduction goal.
To develop a solution for each spend category, we create a financial analysis for each category based on 5 levers: Requirements, Solution, Financial, Process, and Compliance. This analysis allows us to provide improved efficiency and effectiveness, control and probability. All of which lead to a sustained cost reduction bringing an substantial benefit to your bottom line.
The execution phase is based on a process of awarding the supplier, implementing a strong communication system, proper training, reducing costs, change management, internal auditing, supplier auditing and re-training if necessary. From there, we can view the complete financial evaluation and impact.
To complete the process with maximum effectiveness, a reassessment is critical. We develop a schedule for category review. We consider all business cost saving ideas, the expiration dates of contracts, category pricing fluctuation and financial impact. Often, the high spends get reviewed more often. We analyze any necessary changes based on your business needs and develop a strategic plan for your organization’s long-term success.