Post-COVID business slump has triggered a wave of business risks, enforcing a high degree of focus on procurement. As a result, organizations have now started prioritizing the need to control and optimize spend effectively than ever before! By implementing these stringent cost control measures at various S2P activities, businesses can experience an increase in profitability, efficiency, and sustainability.
How Procurement priorities are changing
According to an industry-wide survey conducted by one of the Big 4 consulting firms, the priorities of CPOs were shifting towards digital procurement, cost savings, and operational efficiencies.
- 91% of CPOs get formally measured on cost savings initiatives
- 78% of CPOs wanted to drive operational efficiency and spend control as their priority
- 64% of senior procurement leaders wanted to embark on cost avoidance initiatives
- 23% of procurement leaders were formally measured on revenue uplift initiatives
- 48% of companies plan to give greater flexibility to work remotely
- 76% of senior procurement leaders wanted to embark on digital transformation
4 steps to achieve spend visibility and control
Procurement Analysis – Collect and analyze your procurement data to form meaningful insights and aid effective business decision-making. This will help you gain clarity on your company’s spend in terms of “What, Where, Who, and When”
Identify Opportunities – Review the insights obtained from the procurement analysis to formulate cost-saving initiatives that are actionable, measurable & timebound. It is driven by data but bound by business reality and leadership vision. This helps you to craft a roadmap for cost savings, risk mitigation, and track benefits.
Control and Optimize – Implement the identified benefits as per the benefits management plan and start tracking its progress on the established periodicals.
Make it sustainable – Operationalize the cost savings initiatives and elevate them from a one-time leadership team driven initiative to a target operating model that is fully adopted by the source-to-pay workforce.
This is just the tip of the iceberg. To learn how to put things into perspective, watch this free webinar now!