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SPEND UNDER MANAGEMENT PART 1
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2. Procurement As A Non-Strategic Back
Office Function
Ever wonder why lot of firms view indirect procurement like non-strategic
back office functionality? Maybe it’s that indirect procurement leaders generally
target too narrowly on measuring financial savings via indirect spend sourcing
pursuits and eliminate sight associated with exactly how these people pursuits
impact fiscal metrics such as total cost of ownership (TCO), operating earnings,
operating investment capital and cash flow among others. For that reason
taking on a well-structured spend management framework that establish the
relationship can bring genuine price on the business.
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3. What is Spend Under Management?
• SUM is an important organizational initiative impacting and driving the
spend under management in each BU/P&L, sequential touching to category
and supplier who provides product services with a goal of achieving 85%+
enterprise SUM.
• The analyst firms like Aberdeen reviews the diverse research stream
identifies that companies can perform a 5% to 20% cost out savings per
new dollar of spend brought under management. This can result in millions
or even tens of millions in cost benefits that can be either reinvested or
slipped towards the bottom line as real realized savings impacting earning
per share.
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4. • Furthermore, SUM is really a much more than classic sourcing framework
that highlights the application of intelligent technological innovation,
actionable information as well as robust processes in order to meet
customer demands.
• It considers often overlooked non-pricing competitiveness such as ensure
adherence for you to contract conditions as well as prices, purchase order
concurrence, powerful demand management, and automated supplier
performance management – where leakage most often occurs.
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5. Want to learn more?
• For more details on spend under management and what it can do for you,
browse our website and download the complete white paper here
www.xeeva.com/free-white-paper-spend-under-management-
principles/.
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6. About Xeeva, Inc.
• With over 15 years expertise inside procurement alternatives, Xeeva’s technology
along with value-add services improve productivity, reduce costs and increase
operational efficiency
• Xeeva is driving the development and delivery of the next generation of intelligent
cloud procurement and financial solutions for indirect spend and MRO.
• Xeeva’s technology is used in over 40 countries and is available in 18 languages.
• The company’s technology suite includes Sourcing, Procure to Pay, Supplier
Collaboration, Financial Collaboration and Extended Enterprise solutions.
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