Visibility into spend is a critical part of strategic sourcing. The discipline of spend visibility is a great example of the saying “you can manage what you don’t measure.” As a procurement professional, if you don’t know what your organization is spending, you’re missing out on a huge savings potential. With direct spend, it’s a little easier to get your arms around because all of that contract spend typically flows through the procurement organization. With indirect spend, which is notorious for maverick spending, spend visibility is a different ball game altogether: What do you even look for? What’s the best way to get the information? What do I do with the information?
Well, today is your luck day (as it relates to learning more about spend visibility)! The Doctor over at the Sourcing Innovation blog (one of my must-read blogs) posted a great blog article about spend visibility where you can download–for FREE–a comprehensive document entitled Spend Visibility: An Implementation Guide. This how-to guide describes what spend visibility really is, getting executive buy-in to do it, what traps to avoid, getting at the low-hanging fruit and then doing a deep dive, and best practices. The guide is well thought-out, practical, and well-written. Here’s an excellent quote from the guide that sums up the reason for doing spend visibility right: “The reality is that if spend visibility is not approached in a strategic and methodical manner, then the resulting implementation will likely be only tactical in nature, with just a short term benefit.”
So what are you waiting for? Head on over to Sourcing Innovation and get your spend visibility on!