StrategicSource Blog

2020 will be coming to an end within a few weeks. 2021 will be upon us all soon, and with the new year, there will be significant opportunities and challenges to face. Let us look at 2020 and review the current environment and likely conditions for 2021 before we start planning.

The implementation of a spend management vision – a dedicated function within an organization is very common in most large organizations.  The management of direct and indirect expense are considered an important and strategic role that has a material impact on profitability performance, and efficiency.  Organizations with a defined and well-managed spend management or purchasing function are typically centralized and provide several measurable benefits to their organizations including:

Most large and successful organizations spend some dedicated time each year to strategic planning with their Executive Management Teams. Strategic plans are normally five years out, but can go out as far as ten or fifteen years in some organizations. Planning sessions can be quite formal with the development of vision, mission, SWOT analysis (strengths, weaknesses, opportunities and threats), strategies, business objectives, and more.