Sustainable expense management programs should be managed to align outcomes with company objectives. Doing so amplifies their impact, strengthens stakeholder and supplier relationships, and provides real savings that can be reinvested as necessary.
In this 5-part special series, Art of Procurement Host Philip Ideson will take you through the keys to running a successful expense management program, pitfalls to look out for, and tactics to cover incumbent supplier management, strategic sourcing, and demand and category management.
In part 2, we describe the four most common mistakes companies make when starting an expense management program – and how to avoid them:
Setting unrealistic cost savings targets.
Determining arbitrary savings targets at the category level rather than taking into account market conditions
Sending a letter to all savings with a demand for a certain percentage reduction or cash rebate.
Taking actions that do not have alignment and buy-in from key stakeholders.
