Real Life CFO Challenges Topic 3: Spend Visibility

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Challenge3-michael.pngMeet Michael, CFO of a large manufacturing company.


Michael's organisation lacks visibility on committed costs within each department. In order to reduce procurement costs and improve efficiency, Michael is in dire need to be able to report on future commitments and costs.

In post #3 of the Real Life CFO Challenges series, we will uncover strategies to overcome Michael's spend visibility challenges and uncover the strategies that turned his issue into a victory for his financial department.
 
Michael's Challenges:
  • Little or no visibility on committed costs within each department
  • No real measuring tool to control the approval of expenses
  • No safety net to catch unexpected approvals over authority levels before they’re committed
  • Unable to report on commitments and costs


Michael's Requirements:                                                     

  • Centralised procurement solution
  • Visibility of current spending into each department / strategic project
  • Cost savings across the entire company
  • Keeping Budget controls and policy measures
  • Cost centre approvals and current budget comparisons
  • Requisitioning function for each departmental user within the business
  • Visibility of the requisition and be able to view the progress / status at any time
  • Ability to reallocate the approval of the requisition to an authorised manager 
  • Preferred vendor selection for better price management


The Solution:

If you can measure it you can manage it! The powerful workflow capability in the solution manages each request based on a collection of rules and then routes it to the appropriate delegation authority in the chain. Documents are tracked and visible to the management team at all times. Strict budget control can be incorporated to decline user requests and route to a more senior delegation or authority level based on financial limits.

There’s graphical views of each unique workflow routing. A centralised approval screen or console to enable all approvers to approve costs request individually or in bulk. Real-time notifications via email or alerts of user requests and approvals. 


The Benefits:

Centralised reporting for the business
Web / Mobile reporting access from devices anywhere
Automated distribution of departmental reports
360 degree view of your group’s performance
Accurate and timely reporting

For more information on how we can specifically help you improve spend visibility in your company, start a conversation with us here

 


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