In a nutshell, spend management optimizes a company’s expense habits. To accomplish this task, linking isolated business processes is advisable, therefore spend management, a whole separate software category, has recently emerged for this purpose.
There is great interest in this topic. If we type "What is spend management" into Google, the search engine returns 895 million answers after 0.68 seconds.
That's a lot of answers. The interest - as can be determined with Google trends - has steadily increased over the past years. The Google search engine associates "spend management" in terms of content with "chief executive officer", "human resources”, "money" and "procurement solution”. Thus, it's all about business management, a current business management trend to be more precise.
The variety of solutions that become visible when searching the Internet for "spend management" is very large. There is no textbook definition of "spend management”. Any attempt to succinctly define it in textbook terms results in meaningless, vague phrases. Yes, it's about documenting and analyzing expenses, but that has always been a central task of accounting. What does a “holistic” or “smart” spend management software offer? What range of functions can one expect?
Spend management softwares, thanks to the means of artificial intelligence (AI) for example, should reduce the effort required to manage variable costs. They should also provide additional insights when analyzing data and enable better spending by helping to optimize procurement processes. Consulting firm McKinsey estimates that most companies could save three to four percent on their expenses through improvements in spend management.
A software's performance can also be measured by how well it fits into an existing environment, and how well it can adapt to organizational requirements. This search for flexibility and ease of use fuels interest in spend solutions.
Yokoy's software can be adapted to company-specific workflows with modest effort. As a cloud-based integration platform, the software is capable of establishing relationships between internal and external data collections and linking isolated business processes. It is prepared for the exchange of information with standard business software: Common interfaces (REST API and others) and the products of many vendors such as SAP, Abacus, Sage, MS Dynamics are supported. Privacy protection and data security are always guaranteed.
For more in-depth information on the definition of spend management, including the presentation of the unique spend management cube, please check out our whitepaper.