True insight into an organization’s spend is an essential factor in the ability for procurement professionals to see where opportunities exist to support developing a roadmap alongside the data. But building a robust spend analysis involves following certain steps and avoiding others. Corcentric’s how-to guide, A Beginner’s Guide to Spend Analysis, provides insights and best practices when undertaking this invaluable task, helping you apply the knowledge gained to optimize sourcing, purchasing, supplier management and more. But first, you need to know some of the most important Do’s and Don’ts when it comes to spend analysis.
I know we don’t have to preach to the choir. Procurement professionals are all aware of just how practical spend analysis is for them, but sometimes find it challenging to explain exactly why. Some expenses are simply hard to justify. Spend analysis is often seen only as an added value to the organization, rather than an essential piece to uncovering hidden value opportunities. In an applicable paper, Spend Matters suggests 10 ways to justify the expense for spend analysis to the financial decision-makers at your company. Here are some key takeaways…
CFO’s Bread and Butter: Compliance & Risk
Thanks for joining our series of posts comparing how factors such as timing and cost are seen differently by finance, procurement and legal.
Compliance and risk are no different. While procurement may see compliance and risk management as being a few rungs up their strategic maturity ladder, for finance — and legal, I might add — they are the bedrock of our existence in the organization. If a CFO isn’t focused on ensuring compliance and risk management, he or she isn’t going to be in that job for very long.