Spend management reduces operational costs by 5 percent

Regardless of the size of the industry they operate in, all companies need to track the cost of doing business. As the business environment evolves; trending toward decentralized spending and increased agility, managing expenses across every department within a company is becoming increasingly complex. Siloed data, delayed reporting, and data inaccuracies hinder the ability of small to medium-sized (SMB) businesses and to scale and grow. The adoption of spend-management software introduces a solution for these obstacles and has the potential to drive significant benefits to the bottom line through new insight and visibility into company-wide spending. By implementing fundamental spend-management best practices and adopting spend management tools, organizations can expect to uncover key problem areas and experience improved procurement proficiency. Typically, 20-30% of a business’s operational expenses are tied to inefficient processes, an estimated fourth of which comes from the suboptimal practices that are eliminated through spend management solutions, giving users the ability to reduce overall operational costs by 5%.