Addressing The Risks Of Not Using Spend Analytics Software
Determine Inc Spend Analytics Software
For executives tasked with maintaining oversight and governance of companies spend strategy, the opportunity to leverage spend analytics software is one not to be overlooked. Source-to-Pay software not only provides visibility into current spending, but can also forecast where the company is headed in terms of spend and highlight any concerning patterns early on. Yet, by opting out of this type of software, there are quantifiable risks to be considered.
Vendor Management
Spend analytics software offers critical insight into how much you are spending and at what quality levels. By not having such insights, execs are leaving themselves open to being taken advantage of by vendors; prices may be too high or items may be of much poorer quality than expected for the cost. On the other hand, the cost of maintaining vendor relationships can become increasingly difficult to track when spread chaos across several departments or ledgers.
Data Collection
Analytics software allows companies to easily integrate number of data sources into their system, offering holistic view of their vendor track. Without this capability, executives are left to rely on manually assembling financial data, which is both time and labor-intensive. Additionally, maintaining accurate records and collecting data on all of the different locations, currencies and vendors can be difficult challenge.
Performance Monitoring
Without having access to analytics software, executives are limited in their ability to track and measure financial performance. Knowing which organizations are providing the highest quality services at the most competitive rates can be guessing game if they cannot be quickly identified and analyzed. On the other hand, having access to real-time data and insights allows decision-makers to have quick actionable knowledge regarding their financial performance.
Compliance
Having comprehensive view of financial status and budgeting is critical for ensuring regulatory compliance. Spend analytics software allows for precise tracking of financial transactions, so that execs can provide reports with full assurance of accuracy. Otherwise, manually collecting data, reconciling records and recognizing discrepancies can put companies at higher risk of running afoul of regulatory requirements.
By utilizing spend analytics software, executives will be able to identify potential risks and inefficiencies that may go unnoticed in the absence of such technology. With the help of data generated, execs can make informed decisions to promote financial discipline and drive the most cost-efficient and profitable outcome.
