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 4, we focus the tactics you can use to make savings more sustainable:
- Through Demand Management
- Tighten approval authority levels
- Standardize product / service specifications
- Reuse products / services
- Controls to stop duplicate purchases
- At the Category level
- Spend / supplier consolidation
- Adjust volume mix across multiple suppliers
- Substitute products / services
- Bottom-up review of critical and non-critical spend.
- Local sourcing to reduce total cost of ownership
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Links & Resources
If you are considering starting (or revamping) an expense management program of your own, you’ll want to check out our free resources: The Ultimate Guide To Expense Management: Achieving Cost Savings That Stick and 24 Expense Reduction Tactics that Generate Cash for Your Business.