SPEND MANAGEMENT

It’s an unfortunate reality of business: Even the best-negotiated, most airtight supplier contract can be quickly discarded in favor of maverick buying when someone has an immediate, urgent need. Without proper control mechanisms in place, noncompliance can become the norm — playing havoc with your strategic plans.

Spend management offers an end-to-end view of what is being spent, where, with whom and on what — across the enterprise. It’s an ongoing process comprising all aspects of spend analysis, classification, data and performance management.

SPEND MANAGEMENT — A SIMPLE DEFINITION

In a nutshell, spend management is a catch-all term for a set of techniques, processes and systems that can be deployed in an effort to bring visibility and control to an enterprise’s spend.

GEP’s spend management experts are highly accomplished category and commodity pros with a wide and flexible range of capabilities. Backed by proprietary spend management technology , our industry-leading spend management consultants help global enterprises develop meaningful, durable programs to control and optimize spend and effectively improve the bottom line.

Effective Spend Management Drives Enterprise Competitiveness

GEP combines top-caliber spend category management with powerful spend management tools to deliver world-class spend management consulting services to clients.

Increase Process Efficiency, Lower Costs

Through automation of manual processes susceptible to error, you can realize cost savings and gain value from more efficient PO handling, invoice capture, accounts payable, administrative support and audits.

Manage More Spend, Trim the Tail

Tail spend results from a variety of factors — poor data visibility, time sensitivity, unclear or missing specifications, to name a few. Deploying indirect spend management techniques aimed directly at bringing more spend under your control can shrink that pesky tail, boost savings realization and bring down operational costs.

See Clearly, Cut Your Risks

When you have complete visibility into supplier data, you know precisely what is being purchased, from whom, and for how much. This radically reduces the chances of supplier nonperformance or noncompliance.

Create Successful Synergies, Work Better

Transparency into spending and contracts not only gives you greater control and agility, it helps boost collaboration between your internal and external stakeholders while improving resource allocation. This creates productivity gains and a stronger focus on strategic activities.

How GEP Does It

Unlike other spend management companies, GEP goes the full distance — our spend management experts are hands-on consultants who put their recommendations into practice, turning strategy into action and goals into hard returns.

Spend Analysis

We begin by executing an exhaustive spend analysis program to derive full visibility into spend data and gain actionable insights into spending trends and patterns. Using an approach called closed-loop spend management, we separate actions that generate value from those that erode it to identify previously unrecognized opportunities.

Strategic Planning

With the patterns in view, we start deciphering their meaning and plan a course of action. This involves the application of strategic thinking to develop a practical roadmap for bringing more spend under management and driving all-round enterprise value. This could include vendor rationalization through tactical sourcing activities, renegotiation of existing terms, or simply establishing robust approval hierarchies.

Aligning for Long-Term Success

Most spend management vendors are ready to call it a day once the strategic plan is in place. That’s not our style. We craft a holistic solution for the long haul, configuring business processes and management practices so that compliance and contract utilization are simple and easy for all stakeholders — and buying off-contract becomes the difficult option.

 

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