How does Ariba define spend management?
Crandell: Spend management is how you maximize the return on investment (ROI) from every dollar a company spends. We think of spend management as a journey — and every company is at a different stage in the voyage. Typically, companies start out trying to control their rate of spend — looking for cost savings in procurement or making sure processes are in place for purchasing — and then wind up using spend management as a major contributor to the overall corporate strategy. With the right strategy and solutions in place, companies can do more than just identify savings. They can make sure these savings make their way to the bottom line and improve profits, reduce supply risk, and gain competitive advantage.
