Managing complex indirect spend and vendor documentation requires technology, tools, process, expertise, time, commitment, and resources. It’s not easy. It takes a team of people who know where to look and what to look for.
Limitless Technology has spent years mastering the management of complex variable expenses. Our team works with a broad spectrum of companies that are under great pressure to: manage costs, find creative ways to be more efficient, and grow their business. Many businesses give their employee-driven vendor management teams the ownership and authority of vendor oversight concerning their own budgets, vendors, and contracts. Why? Because either it is the way it has always been done or because the teams want to own and control this function. Meanwhile, the company believes the compensation tied to this critical business function will instill the necessary pressure to reduce spending where possible and drive smart, overall cost management.
However, what most fail to realize is that not only do these teams not have the tools, visibility and best data to benchmark, analyze and make the best decisions, but they often lack the time AND/OR expertise required to do this kind of detailed analytical work.
The focused time required to continually negotiate, manage and administrate the dozens of vendors within each business category makes up a significant portion of a functional leader’s role, and impedes the critical focus of truly managing their department, facility, or branch.
But many more resources are involved in this critical process, creating a cost to the organization. Roles such as Direct Supervision, Facilities Mgt., Operations, Department Heads, Accounts Payable/Bookkeeping, and Finance spending hundreds of hours a year in soft costs.
We estimate that leaders alone spend as much as 6-12% of their time on these types of activities. This “activity” pulls away from the time needed to meet strategic growth objectives, and support other initiatives that can exponentially impact the bottom line.
Now as a whole, we find that even if these internal resources have the necessary detailed eye and expertise, many do not have the time or the tools necessary to gain a proper view of the analytics needed to evaluate this spending.
These missing analytics make it impossible to effectively and efficiently manage these costs and provide the necessary detail to serve as an accurate benchmark for the Company’s expenses and each vendor’s line item in their budgets. Needless to say, this is a problem.
3 common challenges that most companies face
The business environment at a macro-level has never been more challenging. Business expenditures are rising. The competitive landscape is becoming increasingly difficult. Technology is changing at a faster pace than our employees can keep up with. At every junction managing relationships with key vendors is becoming more and more critical and difficult. Developing strategic alliances, while evaluating, planning, negotiating, and implementing complex operational tactics requires a delicate balance.
It’s not surprising that the biggest vendor management challenges can vary depending on the company type and size. Regardless of size, however, there are 3 common challenges that most companies face:
Benefits of VMS
VENDOR MANAGEMENT SOLUTIONS
It is likely that your company works with hundreds of different vendors, all with varying charges, contract terms & conditions, and changing points of contact. This, of course, can become incredibly complex for many people in your organization. Without the proper management of these vendors’ details, you can soon find your organization at risk. Becoming non-compliant with critical processes and procedures, unaware of critical vendor risks, unable to easily access necessary documentation, crippled by poor contractual terms & conditions, and overpaying for goods and services is unhealthy for any organization.
This complexity is what led Limitless Technology to offer fully managed vendor solutions. Vendor Management Solution (VMS) is a discipline that enables businesses to not only cut costs but also: control expenses, drive service excellence and mitigate risks. It also provides a high level of increased visibility and exponential value from their vendors.
Limitless Technology provides a suite of products that offer great value to your entire organization. The foundation for these services are built on 2 pillars of success: our VMS Document Management platform and a Billing Optimization process that has been time tested and verified to provide significant value by our internal team of experts. VMS Document Management is a cloud-based technology that houses all your contracts, supporting documents, critical notifications, and detailed vendor criticalities. Our Billing Optimization process starts with a forensic bill audit and reviews current and past vendor or supplier bills to uncover all billing errors, unnecessary charges, misappropriation, and over-charges. Each of these platforms is available as a stand-alone service.
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