Reduce Your Procurement Risks with Spend Analytics

  • by William Newman, Managing Principal, Newport Consulting Group
  • February 11, 2010
As part of its positioning for the corporate boardroom set of enterprise performance management applications, SAP BusinessObjects Spend Performance Management enables financial and procurement decision makers to have full visibility into both managed and unmanaged spend in the enterprise and throughout the supply chain. Learn how to reduce procurement risks in your supply chain and create a more effective organization in the post-crisis economy through the features available in SAP BusinessObjects Spend Performance Management.
Key Concept
SAP BusinessObjects Spend Performance Management, part of the enterprise performance management solutions suite, allows you to quickly determine levels of unmanaged spend, identify duplicative contract scenarios, and target savings from sourcing efforts and effective negotiations.

With any organization, the ability to focus on mitigating risks from the value chain and to provide sound financial governance over the disbursements of capital and other resources produce bottom-line results. Executives undergo business planning rounds to create the appropriate level of cash flow to manage their enterprises, and this need has only increased in the post-crisis economy.

Direct costs and the risk mitigation associated with managing these costs often falls to various organizations associated with contracting value chain members. These direct costs are spread across the value chain in exchange for goods, services, intellectual property, assets, and materials during product realization and service delivery. As a part of company spend, you also need to rationalize direct costs within financial tolerances and budgeting processes to reduce financial risk exposure.

In organizations both large and small, the procurement function is often the watchdog of company spend — particularly for direct costs incurred in the value chain. However, more than 25% of all organizations do not have a program to manage enterprise spend, and nearly half of those that have such programs don’t have clear visibility to all categories of enterprise spend. These situations can create confusion in the supply chain, where the organization can appear to have multiple decision makers and points of view. In addition, confusion may exist internally and different parts of the organization can have different and even competing objectives in the face of finite working capital and assets.

William Newman

William Newman, MBA, CMC is managing principal of Newport Consulting Group, LLC, an SAP partner focused on EPM and GRC solutions. He has over 25 years of experience in the development and management of strategy, process, and technology solutions spanning Fortune 1000, public-sector, midsized and not-for-profit organizations. He is a Certified Management Consultant (CMC) since 1995, qualified trainer by the American Society of Quality (ASQ) since 2000, and a trained Social Fingerprint consultant in social accountability since 2012. William is a recognized ASUG BusinessObjects influencer and a member of SAP’s Influencer Relations program. He holds a BS degree in aerospace engineering from the Henry Samueli School of Engineering and Applied Science at UCLA and an MBA in management and international business from the Conrad L. Hilton School of Management at Loyola Marymount University. He is a member of the adjunct faculty at both Northwood University and the University of Oregon with a focus on management studies and sustainability, respectively.

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