Coupa Benchmark Report – Measuring Spend Management Success

We introduced the new Coupa 2018 benchmark report titled “12 ways to measure business spend management successlast week. You can download it here, free on registration.

As we said then, the fascinating aspect of this is that the data is extracted directly from real purchase-to-pay transactions via the Coupa platform, their hundreds of clients and thousands of users within those organisations. While the usual survey approach can be useful and illuminating (take the Future Purchasing category management survey and report as an example), this Coupa search is based on what actually happens objectively in real business situations.

Today, let’s look at the area Coupa describes as “digitisation”. Five critical KPIs are defined here:

  1. First Time Match Rate - the match between purchase order, receipt and involve, obviously at first time of asking, not after several weeks of argument!
  2. Electronic PO Processing – fairly self-explanatory, accelerates the PO process and improves accuracy
  3. Electronic Invoice Processing - replacing paper, sounds simple but many still aren’t anywhere close to 100%
  4. Structured Spend – slightly less obvious, this means spend going through catalogues or punch-outs, thus minimising one-off type procurement interventions.
  5. Manual Audit of Expense Reports - this seemed a bit of an odd one, in that we’re not totally clear whether auditing more expense reports is a good thing (to check on validity) or a bad thing (if it suggest widespread fraud or incompetence). Reading the detail, we think it is the latter – if you have a good process, you don’t need to audit so much. Unless your organisation is really crooked, of course …

Anyway, for each of these, the report gives a benchmark percentage, which serves in effect as a target, based on the top performers as identified by the data. We won’t quote these figures here; do take a look directly.

Within this section,  the report then gives recommendations in terms of “Five Steps to Business Spend Management Digital Transformation” – all very sensible, including this:

“FOCUS ON USER ADOPTION: To truly achieve success in digital transformation of Business Spend Management processes, make ease-of-use (usability) a top priority. In Business Spend Management, the best User Interface is “no User Interface” in many cases. With the best digitised processes, many of the users’ interactions can occur quickly in email, text or mobile browser, such as approvals for PO requests, expenses and invoices”.

As we say, well worth a look - download the report here, free on registration.

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