CPOs need to reduce costs
5% to 10%
reduction in annual expenditure, on average, for firms that use digital to manage tail spend
CPOs find value in spend analytics
Optimizing procurement spends has always been a challenge for any procurement organization. Multiple suppliers for the same or similar products take away any volume advantage that an organization may have. Multiple identifications for the same supplier results in further fragmentation of spend data. Lack of standardization in the procurement process further hinders spend visibility at a category and supplier level. Relying on a manual and time-intensive data cleansing process, most companies are unable to accurately classify spends, consolidate suppliers, and identify saving opportunities.
While CPOs recognize the need to drive operational efficiency, reduce costs, improve visibility, and adopt the right spend analytics solutions, barriers to spend visibility remain.