Spend under Management refers to the percentage of total enterprise spend (which is comprised of all direct, indirect, and services spend) that a procurement organization manages or influences. The percentage of spend under management at the average enterprise remains relatively flat at 61.2% in 2017.
After many years of consistent growth, the industry’s all-out drive to place more spend under management has started to slow with more and more procurement organizations seemingly satisfied to manage around 60% of total spend. Only 16% of all CPOs are focused on increasing this number over the next three years. Ardent Partners research has consistently shown that the procurement groups that manage more spend report superior performance across most other key metrics.
Ardent Partners research also has shown that for every dollar that is placed under management of the procurement department, the average enterprise sees a benefit of between 6% and 12% during the first contract cycle.
Luckily, Ardent Partners and BuyerQuest have some strategies and tips to improve spend under management and help procurement leaders convert it into real value. Attendees who watch this recorded webinar will:
- Learn many of the top strategies used by the Best-in-Class to place more spend under management
- Gain insights into how to turn spend data into actionable intelligence
- See how teams can leverage their systems and processes to centralize, control and improve compliance
- Gain a free copy of Ardent Partners’ State of Procurement 2017 Report