Business Spend Management: Better control, better spend
With the world of tech moving at lightning speed and the need for improvements and cost-cutting growing ever greater, project selection and designing a digital roadmap can seem like a daunting task. Companies needing to pivot are revisiting pre-pandemic plans, reprioritising and setting a new path forward, leaving budgets in flux and operations in limbo.
For many CPOs, limited visibility on spending practices and the lack of standard processes across departments and siloed business units can be crippling when trying to optimise spend.
Business Spend Management (BSM) is a somewhat new breed of software that encompasses all of the ways a business spends its dollars. Unifying cross-company
processes for procurement, expense and invoice management as well as contract lifecycle management, supplier information management, inventory, advanced sourcing, budgeting, and analytics empowers better management of spend through consolidation and improved intelligence and visibility that affords insights-driven decision making.
As the pressures to reduce the costs of doing business continue, procurement must look outside of direct spend for cost improvement and budget-cutting opportunities. BSM consolidates data so you can design efficient, cost reduction focused processes
Benchmarking Spend with AI
For more than a decade, Coupa’s Community Intelligence has been leveraging big data to garner insights on how businesses spend their dollars. Coupa’s nearly $2 trillion worth of spend on the platform allows you the ability to benchmark your spend against similar organisations. You can also source suppliers based on trustful verified ratings.
By leveraging both BSM and Community Intelligence, medium to large-sized organisations can improve spend visibility across silos, locate financial inefficiencies, reduce waste, cut bloated budgets and mitigate supply chain risk, giving you fast, verifiable ROI.
At a time when procurement is under the gun to realise cost savings, BSM empowers organisations with the data and control they need to better spend their dollars.
For more information on Coupa’s platform, go to https://www.coupa.com/.
How Covid-19 Shook Up the Who's Who of American Retail
According to the new Digital Commerce 360 Top 500 analysis report, the massive shift in ecommerce habits due to COVID-19 resulted in a windfall for the US’s largest retailers, including Amazon, Walmart and Target.
The study found that the top 500 companies generated a combined total of $849.5 billion in online sales in 2020, representing a 45.3 per cent increase YoY, the largest jump since Digital Commerce 360 began tracking the statistic in 2006 and more than double the median growth of 18.0% seen over the last decade.
Although retailers of all sizes saw an uptick from online sales, in large part, throughout the pandemic, customers looked to familiar big name brands to fulfil much of their essential needs. Demand for items began to spike as manufacturing in Asia was forced to shut down, causing supply chain shortages. As large retailers tend to hold more inventory, this became a crucial differentiator for customers, says Digital Commerce 360.
Combined, Walmart Inc., Amazon.com Inc. and Target Corp. added $265 billion in US revenue to the $791.70 billion U.S. ecommerce market in 2020, accounting for a third of the market.
Considering the need for people to stay busy during lockdowns as well as the requirements of homeschooling, it’s not surprising Joann, a crafting company, showed the fastest online growth of Digital Commerce 360’s top 500.
- In 2019, the bottom 100 of the top 500 registered the fastest growth while the top 100 showing the slowest growth rate. In 2020, however, the analysis showed the opposite, the top 100 largest companies grew at a rate greater than that of the whole, and the top 10 on the list enjoyed a growth rate even faster than the top 100.
- In 2020, collectively the top 10 grew web sales 52.5%, almost five percentage points faster than the top 100 and accounted for 62.8% of Top 500 sales, up from 59.9% in 2019.
- Who made the top 10 was shaken up some. For example, Walmart made it into the second spot, both Kroger Co. and Costco Wholesale Corp. crept into the top 10 for the first time, landing at No. 8 and No. 10 respectively
Segments of retail that enjoyed fueled courtesy of COVID included toys and hobbies, jumping an average of 24 spots in the rankings and food and beverage merchants moved up an average 23 ranks. In contrast, apparel retailers dropped an average 15 positions in the Top 500, whereas jewellery retailers fell an average of 10 spots.
Although Digital Commerce 360 attributes some of the growth to stock positions and the ability of large retailers to manage supply chain issues, even the largest internet retailer experienced disruption. In March of 2020, during the first save of the US pandemic, even the Amazonian giant found themselves running into meeting customer commitments and delivering orders on time. Order cancellations and extended lead times became commonplace. For a time, Amazon stopped fulfilling orders for items considered “non-essential”.
Despite the issues, Amazon maintained its spot as the top online retailer in North America by a large margin, representing 35.7% of all Top 500 sales. Although it should be noted that the share is down from the 36.7% it saw in 2019.
At the outset of the pandemic Etsy, a solely ecommerce company focused on handmade, vintage items and craft supplies, was expected to perform poorly. However, as supply chain shortages for face masks caused a sudden need for cloth masks, many began to turn to Etsy, tripling its stock value by June.