5 Steps to Strategic Spend Management

Managing business expenses and supplier invoices is not just an operational necessity, it’s also a driver of performance and profitability. Even the smallest spending decision is a chance for your business to be more efficient and profitable.  

In this blog we’ll show you how automated business spend management can lead to more strategic spending, allowing you to capitalise on opportunities, encourage stability and protect future growth. 

How Strategic is Your Business Spend Management? 

Before we look at the key steps to achieving strategic spend management, there are some questions you should be able to answer.  

• How is your business spending money? 

• Who is doing the spending? 

• How compliant is the spend? 

• How do you keep track of all of this?   

An automated spend management system will help you answer these questions. But that’s not enough in today’s changing world. The next step is to turn business expenses into a strategic cost centre, where every spending decision aligns with your business objectives.

 

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Let’s look at five important questions to ask about strategic spending. 

1. What is the first step in business spend management? 

The first step is to recognise that businesses of all sizes can benefit from an automated spend management tool. Whether it’s reaching business goals with data-informed decisions, or keeping spending compliant with regulations, strategic business spend management is the solution for any organisation wanting to improve spend governance. With automated spend management, employees gain accountability for their spending habits and gain a clear understanding on  the impact of every spending decision.  

2. What should a strategic spend management plan include? 

One word: flexibility. At a time when uncertainty is a certainty, your organisation needs to flex and adapt at a moment’s notice. From shifting regulatory requirements, hybrid working and global economic disruption to evolving employee expectations and new payment types, everything is changing and will continue to change. A business spend management strategy that gives employees flexible choices is crucial. 

3. What role does technology play in strategic spend management? 

Strategic spend management is dependent on business leaders gaining visibility into business spend and invoice data which is integrated with other financial systems. By implementing intelligent solutions leveraging AI and machine learning you can enhance analysis and uncover opportunities for efficiency and profitability. Predictive analytics facilitate forecasting and planning, empowering stakeholders to make decisions that drive business growth.

4. How does business spend management help employees stay informed about changing policies? 

Solutions that integrate spending policies into spend management software make the standards clear and easily accessible, guiding employees towards compliant spending choices. By automating audit tasks, you can detect non-compliant transactions and potential fraud, streamlining workflows and saving time for finance teams. By installing these technological guard rails, employees have no choice but to remain compliant, even as policies are updated or replaced. 

5. How does strategic spend management help me reach my business goals? 

By optimising cash flow and providing greater budgeting visibility, you can allocate resources more effectively and drive innovation. You’ll be able to balance growth and reinvestment and gain confidence in making data-driven decisions.  

Why Should I Act Now to Implement Strategic Spend Management? 

Here are 5 reasons not to delay your move to automated spend management. 

1. The pace of change isn’t going to slow down — automation is the only way to keep up.  

2. Effective, strategic spend management impacts profitability and performance. 

3. Reaching your business objectives is easier with automated spend management. 

4. The flexibility of automated spend management empowers employees to spend smarter. 

5. It enables you to carefully balance what’s best for the business with what’s best for employees. 

It’s Time to Get Strategic 

Strategic spend management isn't just about controlling costs. It’s about maximising profitability, improving productivity and increasing employee satisfaction.  

Each spending decision presents an opportunity to propel the business forward, making strategic spend management essential for businesses aiming to thrive in today's competitive landscape.