What is Spend Management

Spend Management is a complete solution for businesses to manage their entire spend in one place. This explains what it is and the benefits.

Benefits of Spend Management for Fast Growing Businesses

What goods and services do businesses buy?

Spend Management is a relatively new concept for fast growing B2B businesses and it solves a huge problem.

The way businesses buy from each other involves purchase orders, invoices and on average companies spend up to $22* processing an invoice. With billions of invoices sent globally each year its estimated that over $1 trillion economic value is lost when you compare the most efficient and least efficient processors. (Goldman Sachs report)

To start with, let’s look at what spend means in business and then we’ll see how a system can help make this simpler, clearer and more controlled.

What goods and services do businesses buy? Three things make up the most spend:

Employees, freelancers, office space, consultants, business travel, stationary SAAS software and Cloud based subscriptions - things like HubSpot, Sales Tools, MailChimp, Google /G-Suite, AWS, Developer tools etc Marketing, advertising, websites, design agencies, brand agencies etc

In most business, these expenses are managed by a Sales Director for sales things or a CMO for marketing subscriptions or if it’s a startup, the CEO or CFO. In the former example, the finance team can often end up not knowing what spend is coming out in advance or different departments manage each cost. So it’s a challenge to keep track of how much budget you have to play with each month.

What problem does Spend Management Solve for Businesses?

With a Spend Management system in place within a business, it can solve many problems for finance teams and employees including:

Lack of visibility into what they are spending money on - whether they are a small or big business Lack of automation - using manual processes for invoicing and payments is time consuming Delays - takes longer to send and receive payments No efficiency - employees asking for and waiting for approval for goods and purchases

What is Spend Management?

Spend management is how a business controls it’s complete spending process/cycle end to end. For example from marketing budgets, supplier payments to monthly subscriptions.

Many providers in the market offer expenses and invoices or expense management. This is more about paying expenses on time and having a process for invoicing and approving. Spend management is way bigger than this. It’s a higher level entirely and covers the whole spectrum, the full end to end process and the bigger picture in the fin tech world.

Because once a business starts growing rapidly from a small business processing say 100 invoices per month (using an expense software or accounting software) things become a little more complex and it’s harder to keep track of spend or know exactly when customer payments are due. As a result spend becomes harder to control and revenues harder to forecast and they start to realise they are going to need bigger systems.

They have two choices in this case. 1) they can either buy another system or add-on to their current system 2) look for another supplier to manage what they going to need, which could be company cards, monthly online subscriptions and employee expense reports.

What are the benefits of using a spend management platform?

*Greater visibility of spend across the whole business

*Accurate spend

*Real-time forecasting to see an accurate picture of future performance

*Move the business at a faster speed

*Increased transparency of spend giving you more control

*Flexible pre-approval rules

*Business efficiency and hassle free by automating the traditionally manual process

*Better supplier management

*More financial control across the entire business

*Seamless integration - Yordex is easy to set up and no need for IT teams

*Lowered cost of processing invoices by up to 75%

What’s in it for the customers buying the solution?

More empowered CFO’s and Finance teams as they have accurate and real-time reporting A partnership - we provide a highly skilled professional one-to-one service. With Yordex’s Spend Management platform - we offer a tailored service for all our customers so they know exactly how to use it and get started.

How Yordex is Unique for Fast Growing Businesses

Yordex is a complete spend management solution and our platform offers budgets, expenses, payments, invoices, virtual cards, pre-approvals and forecasting. So everything we and we add new features.

We scale with your business as it grows, so we are the only platform that offers fast growing businesses a scalable solution to manage their entire business spend in one place. We Budgets - Superior budget management for department heads to control, manage and have spend visibility Invoices - Total control of spend with better management of suppliers and an automated sign off process Expenses - Complete expense management solution. Track & manage online subscriptions Pre-approval process - giving you greater control before employees commit to spend. Virtual cards - tbc

Join our happy customers

These customers already reduce their invoice processing cost with Yordex

By automating the traditionally manual invoice and payment process Yordex made it possible for us to offer payments on our marketplace. The hassle free process gives our customers another reason to place more orders through our site.
Photo of Sheetal Sachdev

Sheetal Sachdev
Founder/CEO at Treniq

Treniq logo
The Yordex ‘distributed ledger’ approach could well be the lowest cost way of processing invoices.
Photo of Aidan Connolly

Aidan Connolly
Former CFO at Worldpay and Sodexo

We chose Yordex because of their flexibility and because we think their approach of providing a single source of the truth between us and our suppliers is the best way for us to automate invoice processing.
Photo of Remco Rausch

Remco Rausch
Enterprise Product Manager at LoveCrafts

LoveCrafts logo
By automating the traditionally manual invoice and payment process Yordex made it possible for us to offer payments on our marketplace. The hassle free process gives our customers another reason to place more orders through our site.
Photo of Sheetal Sachdev

Sheetal Sachdev
Founder/CEO at Treniq

Treniq logo
The Yordex ‘distributed ledger’ approach could well be the lowest cost way of processing invoices.
Photo of Aidan Connolly

Aidan Connolly
Former CFO at Worldpay and Sodexo

We chose Yordex because of their flexibility and because we think their approach of providing a single source of the truth between us and our suppliers is the best way for us to automate invoice processing.
Photo of Remco Rausch

Remco Rausch
Enterprise Product Manager at LoveCrafts

LoveCrafts logo

Summary

As a fast growing business, the ability to manage business spend is vital to continued growth and investment. With Yordex, we have built one system to manage the entire process from expenses, budgets, invoices, pre-approvals and virtual cards to pay for goods instead of using company cards. By using one system, it enables the whole company to use it, employees, suppliers, contractors and customers. CFO’s, finance teams and business leaders can make smarter decisions when they have full control of spend in real-time.

In summary, managing your spend will save businesses time and more spend. Switching to a professional one size fits all Spend management Solution will increase your efficiency, growth, empower your finance teams and give you incredible amounts of visibility, accuracy and control over your spend. The beauty of Yordex is we manage everything in one place and our platform scales as you grow.

Start Your Free 30 day Trial with Yordex today or contact our sales team sales@yordex.com

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