We guarantee 100% Spend Control. This is the bold statement that is repeated everywhere in AirFaas material. And sometimes we get asked, “what the hell does that even mean?”. That is a fair question, and luckily it is easy for us to answer!
Just to be clear, when we talk about spend, we talk about direct spend. With our customers, direct spend constitutes a major cash flow and indirect spend doesn’t play a major role for them. Spend Control in our view consists of 3 core elements:
Being able to define, monitor, and adjust the processes is crucial for having control over your spend. Without an established best practice it is very difficult to have a uniform way of working, documenting, comparing, and making decisions. In the worst-case scenario, all buyers work in their unique highly personal way. They make decisions based on their own criteria, leading into a situation where the results of the work are all over the place both literally and figuratively speaking. Sometimes, when a buyer is highly experienced this can be a good thing. But overall having a standardized process supports both strategic and operative purchasing.
Spend visibility is the only way to really understand outgoing cash flow in a meaningful way. It also allows you to analyze and understand the performance that you are getting for each euro spent. With proper spend visibility connected to category management capabilities, you can continuously evaluate how your spend changes. This means you can understand what the root causes are behind those changes, act on anomalies, and detected trends before issues become problems.
The ability to audit is an important element for creating a culture of accountability in your procurement organization. It will greatly reduce the amount of time in finding root causes for various purchasing-related problems and set a standard that nothing can be swept under the rug.
Individually, all of these are great vehicles for driving better buying and better control over your spend. But together, they are a truly powerful combination for understanding what is going on in your organization and driving cost-efficient, compliant behavior. When your organization can do the right things, document them in a way that information can be accessed later, and you have full visibility into everything procurement-related, you have reached 100% spend control.
How can AirFaas guarantee 100% spend control?
Because of the capabilities we provide to all AirFaas users we are not shy in guaranteeing 100% spend control. Because that is what AirFaas was built for.