Small costs add up to big spending for any organization. When purchasing remains on-budget and accounted for it is business as usual – but quickly overspending can spiral out of control, causing organizations to run amuck. Major causes of overspending include:
- Poor planning and limited YTD spend visibility
- Maverick or off-contract spending – often for “consumerized” products
- Consumption or usage-based contracts where consumption drives cost – often without the budget owner aware of the costs that they are incurring
- Uncategorized spend – often with late allocations
- Unexpected or emergency costs that weren’t properly planned for
Stave ProcurementPath can be a company’s secret weapon to prevent overspending. It’s a cloud-based Procurement suite for ServiceNow that includes real-time financial visibility into spend management and budgets analysis. Automating Spend Management can provide your organization with a wide range of benefits including:
Down-to-the-Dollar Cost Tracking
The best way to keep tight control of a budget is to track everything down to the penny – from the beginning. While good financial control is always the goal of any organization, reality doesn’t always line up with this vision.
Situations such as over or duplicate ordering happen: a manager with good intentions may frequently order too much of certain materials or placing the order too early in the supply cycle. This can cause the company to hold excess inventory, experience swings in month-over-month costs, and waste money excess inventory, perishable goods, and warehousing costs.
With Stave ProcurementPath, this situation is halted before it ever starts. System rules can be put in place to prevent orders that exceed spending limits. The system can trigger an alert when the limit is looming, or require the CFO’s approval to exceed the limit. The company can maintain close control of spending at all times.
Clear Understanding of Budget and Contract Ceilings
Stave ProcurementPath also makes it easy to observe and act on budget limits or contracts ceilings. Your organization can ensure it will never exceed a budget limit or contract ceiling – preventing last-minute procure actions or being forced to pay penalties for exceed agreement terms.
With a clear understanding of spend, you not only avoid excess costs but also can execute every contract to its terms and conditions, every time. There’s no worry that you’re doing too much or too little with regards to any contract supplier. It’s always easy to see where things stand in the system.
Detailed forecasts are also simple to create with Stave ProcurementPath. There’s no guesswork based on various colleagues’ hazy memories. Any time you need a precise prediction of future costs, it is instantly available in the system.
Being able to develop forecasts – and also see complete spend histories – allows better decision-making about new spend and contracts needs. You can make the most cost advantageous choice every time.
Accurate forecasting can also help in understanding the impact of current vs. planned spend rates so you can do what-if scenarios and see the impact on your overall financial picture. If your company is looking to adjust its spending levels significantly, ProcurementPath is your tool to provide this insight.
Long-Term Financial Stability
Stave ProcurementPath takes spend management to a new level and provides spending stability over the long term. It can even enable procurement innovation and increase the value procurement provides to the organization.
Keep your company from ever overspending again and maintain cost control with Stave ProcurementPath. See a video about how it works, go try it out in the ServiceNow Store, or connect with Stave to learn more.