Procurement spend is by far the largest expenditure for product-centric businesses. In fact, on average 40-45% of a company’s revenue is spent on procurement, yet most organizations admit it is poorly managed. In fact, in a recent IDC Intelligent Spend Management survey, 90% of respondents said there is room for improvement to control spend. By managing spend with legacy systems and outdated technologies – some even still paper-based – companies are missing out on significant opportunities to drive growth and success. From the survey, IDC also concluded that organizations recognize the benefits of a new approach, one that offers a holistic view of spend across all categories from direct and indirect materials to business travel to external workforce and services procurement.
The IDC survey polled more than 800 spend management decision makers across four regions globally to understand the current state of the market and appetite for a new approach. Respondents were asked about spend management challenges, critical needs and for reaction to the intelligent spend management concept.
Some 95% of respondents said they are likely to invest in and deploy an ISM platform within two years to drive a more connected, agile and transparent process. IDC believes that organizations recognize the benefit of a holistic spend management platform that enables them to leverage machine learning and other emerging technologies to extract insights that will drive more informed decisions not only to generate cost savings and reduce supplier risk, but to propel businesses forward in achieving strategic goals.
Based on the survey results, the IDC White Paper, sponsored by SAP, “The Future of Spend Management: Approaches, Opportunities, and Challenges in a Digital World,” explores the key benefits of people, process, and technology coming together to empower the future of spend management. To download it, visit the resources page on ariba.com.
And for a deep-dive with guest speakers from IDC, join the live webinar taking place on February 6 where the analysts will share:
- key insights from the 2019 Intelligent Spend Management Survey
- an overview of industry-wide buying behaviors, top challenges, and unmet needs
- guidance on valuable opportunities and systems companies should embrace
- a unified approach that will boost efficiencies and minimize risks
Managing spend is more important than ever in today’s ultra-competitive digital world. And, it’s the companies that pay attention and evolve to embrace new approaches and technologies that will be in the best position to innovate and grow.