Monday 26th February, 2018
Coupa Software has announced the publication of its 2018 benchmark report - 12 Ways to measure Business Spend Management Success.
The report identifies 12 of the most important key performance indicators (KPIs) in business spend management and shows that, in addition to improving process efficiency and compliance, leading organisations can realise savings of up to nine percent of their spend under management by digitising their processes. With spend under management often measuring in the millions or even billions of dollars, percentage savings of this magnitude are significant and show directly on a company’s bottom line.
In compiling the report, Coupa aggregated and analysed anonymous data compiled by its Community Intelligence from customers that represent the top quartile of performers per KPI in 2017. The KPIs include indicators such as:
- Requisition-to-Order Time
- First-Time Match Rate
- Pre-Approved Spend
- Realised Savings
These indicators have been assigned across four categories – Process Efficiency, Digitisation, Compliance and Savings.
“It’s incredibly valuable to be able to compare your own business spend management performance to leaders in the field,” said Amit Duvedi, vice president – business strategy at Coupa. "The report shows the levels that are already being achieved so it is clear what is possible and what organisations should be striving for."
Alongside identifying levels of savings that are achievable, the benchmark report also shows how digitising spend management has additional benefits such as improving process efficiency and reducing fraud through digitising purchase order processing and expense reporting.
"When organisations decide to embark on a business spend management initiative, one of the first things they need to do is define what success looks like, and how it should be measured," said Duvedi. "Benchmarks are a great resource for that, and the benchmarks presented in this report can help organisations set very specific targets."
The full report can be downloaded here.