Six-Sigma in Spend Management
Six-Sigma in
Spend Management
Secrets of Success
www.zycus.com
©Zycus Inc.
WHITE PAPER
Six Sigma in Spend Managment “Secrets of Sucess”
Summary
L
eading organizations have started to move beyond tactical use of spend management, embracing initiatives that consider spend
management as a key strategy to approach corporate objectives. Latest being the adoption of Six Sigma principles to Spend Management. Organizations are now striving to institute a spend management process that has defined objectives and measurable process parameters. All they desire is, continuous process improvement: the principle Six Sigma objective. While, the Six Sigma initiatives are in full swing at many enterprises today, they are constantly hitting roadblocks due to inability of tracking and measuring process parameters. We explore here the root causes of what makes or breaks the adoption of Six Sigma and how leading enterprises leveraged Zycus Spend Data Management software to achieve Six Sigma process excellence in Spend Management.
©Zycus Inc. 1
WHITE PAPER
Six Sigma in Spend Managment “Secrets of Sucess”
Six-Sigma-Spend Management Drivers:
Institutionalized, standardized, enterprise-wide process excellence to achieve consistent and predictable results is the ultimate vision of Six- Sigma. Six-Sigma tools and disciplines as applied to Spend Management aim to identify the process inefficiencies (like contract leakage, maverick spending etc) and fix them with the ultimate goal of being predictive and eliminate costs like maverick purchases that are associated with uncertainty.
Six-Sigma-Spend Management Drivers: n n n
n
Savings yield from Spend Management Process Maverick Spending as a % of total Spend Consistent & Predictable results by Spend Category - Office Supplies - IT services - MRO - Office Equipment % off the Enterprise Spend under management
Six-Sigma principles when applied to Spend Management yield substantial results but,
Spend Management
Secrets of Success
www.zycus.com
©Zycus Inc.
WHITE PAPER
Six Sigma in Spend Managment “Secrets of Sucess”
Summary
L
eading organizations have started to move beyond tactical use of spend management, embracing initiatives that consider spend
management as a key strategy to approach corporate objectives. Latest being the adoption of Six Sigma principles to Spend Management. Organizations are now striving to institute a spend management process that has defined objectives and measurable process parameters. All they desire is, continuous process improvement: the principle Six Sigma objective. While, the Six Sigma initiatives are in full swing at many enterprises today, they are constantly hitting roadblocks due to inability of tracking and measuring process parameters. We explore here the root causes of what makes or breaks the adoption of Six Sigma and how leading enterprises leveraged Zycus Spend Data Management software to achieve Six Sigma process excellence in Spend Management.
©Zycus Inc. 1
WHITE PAPER
Six Sigma in Spend Managment “Secrets of Sucess”
Six-Sigma-Spend Management Drivers:
Institutionalized, standardized, enterprise-wide process excellence to achieve consistent and predictable results is the ultimate vision of Six- Sigma. Six-Sigma tools and disciplines as applied to Spend Management aim to identify the process inefficiencies (like contract leakage, maverick spending etc) and fix them with the ultimate goal of being predictive and eliminate costs like maverick purchases that are associated with uncertainty.
Six-Sigma-Spend Management Drivers: n n n
n
Savings yield from Spend Management Process Maverick Spending as a % of total Spend Consistent & Predictable results by Spend Category - Office Supplies - IT services - MRO - Office Equipment % off the Enterprise Spend under management
Six-Sigma principles when applied to Spend Management yield substantial results but,