A Spend Management Bail out Plan

In a recent post over on Supply Excellence, Diana Brown does a commendable job in suggesting that indirect spend is a great place for companies to create their own "bail out" plan. According to Dianne, companies should focus on three areas in their indirect spend bailout: spend access, sourcing execution and compliance management. I could not agree more, and the third bucket, compliance management, might yield the most rapid savings of all. Invoice audits, for a start, are often a great way to achieve quick-hit savings. Start out with office products and move onto telecom and other areas for the biggest bang from the indirect Spend Management buck. And then think through true proactive compliance management by automating the requisitioning, invoicing and supplier management process across all of your indirect spend categories. This automation factor has another key benefit as well -- stopping spend before it happens. For a good amount of indirect spend is somewhat discretional by nature. And when people know they're being watched, they buy less.

- Jason Busch

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