Spend Under Management Part 4 of 4

August 20, 2015 | Xeeva Team

We’re in the home stretch now… The spend under management (SUM) framework provides executives with a simple outcome-based model to drive the necessary changes in their organization to capitalize on the significant savings opportunities available to most organizations. The benefits of moving to best-in-class under the SUM framework include:

Alignment of indirect spend objectives with core financial metrics 

  • Defines and details actual spend at a granular level utilizing robust spend analytics
  • Defines enterprise objectives by business unit and P&L
  • Links cost savings targets directly financial objectives
  • Details what, when, how, and by whom cost savings will be pursued
  • Increases visibility and accuracy into forecast savings by BU and P&L

Significant improvement in key operational levers and financial results 

  • 30-40% greater addressable spend visibility
  • 20-40% less maverick spending and savings leakage
  • 5-10% reduction in working capital requirements
  • Improved spend coverage to levels 85%+
  • Incremental ROI on existing technology investments
  • Lean processes and consistent execution approaching Six Sigma performance

Bottom line results measurable at an EPS level 

  • 2-3x improvement in sourcing savings from the indirect procurement organization
  • Indirect costs as a percentage of COGS reduced by 10-15% per year
  • Corporate overhead as a percentage of sales down 2-3%
  • Capital dollars 30-40% more productive

SUM transforms what could be a complex and overwhelming task for many organizations down to a few basic principles with very clear actions. For more information about SUM and how to implement, please contact us at

Download the complete whitepaper here