Author Archives: Ashwin Kumar, GEP

How to boost confidence and agility with Budget to Pay

GEP Budget to Pay

Typical budgeting approaches — including ZBB, or zero-based budgeting, and a variety of other cost reduction initiatives — have been the norm for years. However, maverick, non-compliant spending continues to be a big obstacle to delivering value and leads to savings leakage.

A fully compliant purchase means buying from the correct supplier, at the right price and with adequate volume. To drive spending through compliant channels, mature organizations use rigorous procure-to-pay solutions to address the price and supplier aspects of compliance. It works well.

But where you don’t see a fully evolved solution is in the demand control space.

What can you do?

Try a holistic, closed-loop demand compliance approach to budgeting — what we at GEP call Budget to Pay.

Organizations have made some strides in demand compliance. Many have done three steps really well: