BUSINESS PRODUCTIVITYEnterprise Spend Management
Your ERP does not ‘control’ procurement costs. But there are a variety of ways of managing your spend better. Perhaps using creative contracts, creative pricing and delivery terms, alternate sourcing using Business Networks, Sourcing using Auctions, near sourcing with most value added before production, contract manufacturing vs in house manufacturing.
Lydian’s consultants have the depth of expertise to suggest ideas on procurement cost savings.
Technology can only do so much to reduce costs of procurement. E.g you can enforce contracts, or you can conduct auctions on Ariba Business Networks.
If you are a large diversifed group with multiple purchasing organizations, chances are you are paying more for the same product to the same vendor in one group company vis a vis the other.
But Spend Management has many facets. Incl. value engineering, standarization, low-cost sourcing, reverse auctions, negotiation, tax avoidance or even making good some regulations that favor procurement for certain notified vendors and countries. It needs extensive business and product knowledge. Lydian’s consultants come with extensive consulting background in Spend Optimization and hence are well placed to add significant value to customers on technology driven transformation of procure to pay cycle.
