Several factors can create a wall that hampers a procurement organization’s spend visibility.
- Outsourcing adds layers between the organization and suppliers.
- Internal demand can shift from on-contract goods to things that may be off-contract.
- Lack of proper tools prevents organizations from gathering spend data.
- Local lines of business may develop their own supplier relationships separate from those controlled by the centralized procurement group.
Multiple layers of personnel and geography between the executive CPO and a commodity manager across the world limit spend knowledge significantly. It is important for organizations to have an ongoing spend analysis strategy that enables them to continually bring data together for analysis at high and granular levels.