Why is understanding spend important?

Insight into spend means that, as an organisation, you know in real time what liabilities you have, where money is flowing and whether spending fits within contractual agreements and budgets. "It's not about collecting data, it's about understanding what is happening and why," says John. Financial control starts with transparency.

A powerful solution brings together all relevant data: invoices, purchase orders, contracts and approvals. This creates a reliable picture that leads to informed decisions. "You don't want to explain deviations afterwards. You want to recognise them in advance," states John.

In many organisations, crucial supplier or cost information remains scattered across systems or departments. This creates blind spots. "If you rely on manual overviews or late signals, adjusting is almost impossible," warns John. Good insight helps you spot risks early, be it budget overruns, contract breaches or compliance issues.

Combining all data in one platform creates a control point that continuously monitors. As a result, errors are detected faster and deviations can be discussed immediately with relevant departments.

• Faster action on overruns.
• Lower workload through automatic alerts.
• Better collaboration between Finance and Procurement.
• Clarity on supplier performance.
• Greater confidence in decision-making based on up-to-date data.

More and more companies have to account for their sustainability goals. Understanding spend is an indispensable building block in this regard. "If you don't know who you are doing business with, you can't manage ESG goals either," John argues. Think about carbon footprint, diversity in the chain or compliance with ethical guidelines.

By linking ESG criteria to supplier and invoice data, sustainable business becomes concrete. And dashboards with up-to-date reporting make it easier to meet external requirements.

A common pitfall is that organisations rely on Excel or separate tools for insight. This not only takes time, but also creates errors. "Anyone who needs five Excel files to explain their spend is sitting on a time bomb," John states sharply. The solution lies in central data streams that are automatically enriched and validated.

A smart platform ensures that you instantly see what you need to know without delay or manual work. This allows employees to focus on analysis and action, not administration.

Wondering how Vebego gained full control over their procurement and supplier processes? Read the customer case and find out how they achieved insight into expenses with one central tool.

Technology plays a key role in gaining insight. "But technology has to serve the user," says John. User-friendliness, adaptability and overview are prerequisites to really benefit from it.

A modern solution is modular and grows with the organisation. Be it extensions, legislation or updates. A scalable approach ensures that insight into spend does not stagnate as soon as circumstances change.

Finally, John stresses the importance of collaboration between departments. "Finance sees the numbers, Procurement knows the suppliers. Only together do you get the full picture." Insight into spend thus becomes a common interest, not just of the controller, but of the entire organisation.

A shared platform makes it easier to consult, share goals and make improvements together. This leads to better returns and more agility in a rapidly changing market.

Wondering how your organisation can get a better grip on spend? Request a demo right away and discover how ISPnext provides clear insight into every step of your financial process.