Typical spend data is not useful to provide business insight and drive informed decision making. In many large global operations, spend data originates from different people, in different organizations, in different locations, even using different vernacular or languages, and all with different requirements. Further, it is typically coded from a financial perspective. While General Ledger (GL) and cost center are helpful for the finance organization, they do not provide the views needed to drive procurement decisions.
How can procurement and vendor management become more aligned with, and demonstrate its impact on, the main measures of business success? What impact does procurement make on a company’s sustainable shareholder value? This is a question that CPO’s face but few have been able to answer.