Whiteboard Wednesday: Spend Management vs. Spend Optimization

Spend optimization starts where spend management stops. For procurement teams to be strategic, they need to move beyond just managing their spend and begin optimizing it across a company.

Where’s the best place to start with spend optimization? Contracts. First, centralizing documents in one place allows for a full view of all the spend in an organization. An effective contract lifecycle management platform gives a business not only a repository for these documents, but also has templates, approval workflows, and deadline alerts. With these tools, contract teams have better knowledge across their company of the spend going on and how it can be better enhanced.