Five Ways a Spend Management System Can Save You Time and Money
When Whirlpool Corporation and Greystar Real Estate Partners announced a new joint national appliance program, the news made me think about an important behind-the-scenes solution highlighted in their press release that allows vendors and suppliers to make more informed decisions, work smarter and manage their money and inventories much more effectively. And it’s one you should think about, too: a spend management system.
Briefly, a spend management system helps owners manage and control operating expenses by managing eProcurement, payables processing, and invoice management processes into one centralized online solution.
I found it interesting that it was important enough to specifically mention the spend management systems vendor in the news release. In this case, Whirlpool worked with RealPage’s OpsTechnology™ Spend Management Systems to ensure Greystar’s processes remained efficient.
DeeAnne Clowes, senior director of national procurement at Greystar, commented in the release that, “Whirlpool Corporation’s continued efforts with this system further showed us their commitment to our business and the multifamily industry. Working with OpsTechnology will allow us to achieve seamless procurement and invoice processing.”
Looking at this more closely, here are five ways that a spend management system can provide your company with a total expense management tool, saving you time and money.
Lower Purchasing Costs
A spend management system enables consolidation of purchasing with your approved suppliers for increased discounts. Online purchasing and electronic invoicing allows you and your suppliers to save time and money on transactions because the time and costs that paper-based systems demand are eliminated. Additionally, electronic purchase orders and invoices speed up processing time so you can achieve prompt-pay discounts.
Reign in spending with automated controls on purchase orders and invoices based on budgets and user limits. Purchasing is controlled at the site level with a customized online catalog that features only approved suppliers and products. It may seem more convenient to buy from the store down the street, but more likely you’re going against company policy and it’s less cost-effective.
Monitor spending with on-demand visibility into every purchase order and invoice in the system, and the net effect against the budget. Plus, you have real-time visibility into every transaction and budget across the portfolio. It’s a nice way to get rid of those month-end spending and missing bill surprises.
Better Collaboration between Buyer and Supplier
Orders are placed, approved, and billed in one spot, which benefits the buyer and supplier. This makes it much easier for a supplier like Whirlpool to do business with a large national company like Greystar.
Meets Green Initiatives
Getting ENERGY STAR qualified appliances from Whirlpool helps Greystar meet their sustainability objectives for energy management. Using an online spend management system further meets that goal by eliminating a paper-based system. And you can get rid of those filing cabinets because all the paperwork is stored online and readily available.
The news release is a great example of how a strong supplier network and coordination of purchasing activities through the use of a spend management system can provide a huge opportunity to impact the bottom line. When technology allows your site staff to focus on revenue generation and customer service activities rather than wasting time chasing paper, everybody wins.
What are your thoughts? Are you using spend management systems in your day-to-day operations? What kinds of savings and efficiencies have you experienced? Sound off in the comments below.