Getting Started with Spend Performance Management
Effectively rationalizing your company's supply base to generate visible savings, while meeting the needs of your stakeholders, requires a fine balance of quickly identifying your best opportunities for savings and understanding the full extent of your buying power by negotiating more effectively with suppliers and reducing maverick spending and contract leakage. To accomplish these objectives, it is essential that you understand how much you're spending, with whom, and on what. You also need specific information about supplier prices, contract, performance, and optimization opportunities.
The SAP Spend Performance Management application can help your business users - from analysts to category and line-of-business managers - gain insight into savings opportunities and compliance by enabling access to aggregated, enriched spend data. SAP Spend Performance Management can help your end users continually identify fragmented contracts, distributed supply bases, and multiple contracts with single suppliers and sole-sourced suppliers. In addition, you can proactively identify supplier risks based on external information as well as prioritize these risks by spend volume and the buying centers affected. Plus, your users can easily analyze the distribution of company spend together with supplier risk and market factors that may impact that spend.
For more information on what Spend Performance Management can do for your business, the following links will provide a good starting point:
This overview document provides details about the SAP Spend Performance Management solution - how it is used, the types of organizations that use it, and the potential benefits that can be gained from it.
Ramesh Sunder explains SAP Spend Performance Management and how it can be deployed in existing IT landscapes to leverage investments in ERP, BW and other related technologies.
In the second part of this blog series, Ramesh Sunder shows us how a SAP Spend Performance Management solution can leverage and extend the existing ERP investments that an organization has already made.
SAP Spend Performance Management comes with a set of pre-defined content that aims to provide quick insights into various aspects of the business. Ramesh Sunder takes us through some of these in this third installment in his blog series.