Enterprise Spending Platform
Enterprise Spend Management
Our enterprise spend management software is built to give you a complete and instant overview of your company’s spend. This allows you to continuously view and review outgoings, consolidate expenses, and avoid unnecessary spending.
Virtual corporate credit card for spend management
Forget paper receipts and overblown employee spend. Combining Tradeshift Go with your card program lets you issue pre-approved, encrypted virtual cards through one simple web app.
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Enterprise Spend Management - FAQ
In business, enterprise spend management is the practice of managing all supplier and company purchasing to identify and optimize every dollar spent in your ‘tail spend’, which is typically defined as the money that an organization spends on purchases that make up approximately 80% of transactions but only 20% of total spend volume.
Long tail spend represents up to 20% of employee spend that is either unmanaged or not approved by management. In terms of tail spend, 80% is generally approved by management and accounted for, whereas this 20% of long tail spend represents a larger portion of employee spend not being approved or planned for.
A spend management platform (like Tradeshift Go) allows organizations to easily gain insight into their business spending, keep an eye on metrics, put all information in one centralized place for all stakeholders to reference, and empower your team to have greater visibility into spend management.
The core function of an enterprise spend management platform is the ability to provide insight into company-wide expenses by organizing and analyzing spending data. By doing this, the platform enables easier and faster management of spend, along with allowing for more efficient budgetary decision-making.
Spend analysis can be broken down into 4 different stages. The four stages in spend analysis consist of
- Compiling Data – This step is integral to consolidating important information from relevant sources like invoices, purchase orders, and more. If a spend management platform is used, this process is typically easier to conduct.
- Verifying Data – At this point in spend analysis, experts want to analyze data and make sure there are no gross discrepancies in metrics and all charges look in line with forecasted spend. If necessary, data formatting should also be consistent across the board for ease of analysis.
- Categorizing Data – Then, this data needs to be categorized by similar kinds of services or goods to help organize findings and dive deeper into larger trends
- Analyzing Data – Finally, spend analysis concludes with the powerhouse of the stages – you guessed it – analysis. After compiling, cleaning, and classifying this data, you can rest assured analysis can be conducted correctly.
There are five key components to spend analysis:
- Identify your Sources – Seek out the information you want to analyze from various
- Gather Data in a Central Location – Compile all desired data into one consolidated place for ease of viewing and editing.
- Cleanse to a High Standard – Ensure all data is correct and formatted correctly by conducting an audit to prepare the data for analysis.
- Organize by Supplier – Separate different data sources by what kind of product/services they fall under. This also will help prepare the data for
- Analyze – Again, this process is finished by the conduction of data analysis. This analysis process may look different depending on the intent being your spend analysis.
Spend analysis should typically include analysis markers like product consideration, pricing and payment terms, quantities, suppliers, and business units.
The four major expenditure categories are consumption, investment, net exports, and government:
- Consumption – This refers to the amount of durable and non-durable goods and services purchased by individuals.
- Investment – The investment category of expenditure consists of purchases that businesses make. Things like the status of the stock market, business investments, and residential developments fall under this category.
- Net exports – To calculate net exports, experts look at the number of exports a country makes and subtract the total imports.
- Government – This segment represents the goods and services purchased by governmental bodies.
Expense management describes the systems created by an organization to process, pay, and tabulate employee spend. This typically includes expenses for travel, meals, or other expenses occurred by executing their job function. Spend management refers to the cost incurred by the organization as the cost of general operation. Spend management includes utilities, inventory, and production cost.