Procurement Software for Better Budgets
Purchase to Pay Solutions
Budgeting is foundational to any organization’s healthy spending. Recently, my own experience with budgeting my personal finances led me to take a closer look at my personal spend culture. After moving to one of the most expensive cities in the country, I decided to set a stricter budget and closely monitor each purchase. Every time I thought about making a purchase I analyzed its value and how much it would pull away from our monthly allotment in that category.
The more I analyzed, the more I seemed to worry about new perceived needs and costs. At the end of the month, we came pretty close to keeping our spending within our budget, but decided to take a different approach the next month. Instead of sizing up each purchase, I used an online budgeting tool that connected to our accounts to give us real-time spend feedback. The tool allowed me to check in periodically to see if our spending was on track. During the second month, I worried less and spent less. I realized that my own personal spend culture led me to make better purchasing choices than a strict budget with constant analysis on spending.
Organizations create budgets and must stay within their budgets to succeed financially. Without a positive spend culture backing the spending behind those budgets, organizations will struggle to succeed in their financial health. Micromanaging spending creates unnecessary stress and frustration and may not even succeed at keeping spending within budget. If employees rely on a strict set of guidelines rather than being empowered as purchasers, then the company will continually struggle to set enough guidelines for each possible situation.
E-procurement gives companies better insight into spending habits and real-time spend. Because purchasers and procurement leaders can instantly see exactly where their spending is against their budgets, they can quickly make decisions that align with their purchasing goals. Those purchasing goals should go beyond just dollars and cents. Quality and social motivations should be considered in the procurement process.
With a better understanding of how purchasers make decisions based on analytics in e-procurement systems, companies can make better strategies and fuel a more positive spend culture.
Learn more about creating a positive spend culture through an e-procurement system with a live demo.