Three spend software myths you need to know about in 2020

Software revolutionized the 20th century and it continues to add value to our lives in this one.

But even with artificial intelligence integrations, it has severe limitations, especially as it relates to managing tail spend. Here are three myths that get to the heart of why utilizing software alone won’t help your organization realize the savings to its full potential.

Myth 1: One size fits all.

Every organization is different. It has its own unique set of challenges.

Using software may help you see your spend in one place or let you know if the supplier was paid, but it can’t help you get to the root of spend problems or help you consistently manage them so they don’t reappear.

A solution to managing tail spend must be customized with your organization in mind. Sure, you might be able to set an automation here and there in the software based on your needs, but to discover the real change your organization requires, you need experts on the suppliers serving you at your side.

Myth 2: You can run your operation on autopilot.

Try telling that to 2020.

Relying on software automations to run your organization in the midst of a global pandemic means your needs change from second to second instead of fiscal year to fiscal year. Autopilot mode won’t cut it during a global pandemic and it won’t cut it during normal times of operation either.

You must be totally invested in overseeing all aspects of your operation outside of the software, in real time and with boots on the ground. Expert boots on the ground.

Myth 3: Seeing your costs on a dashboard means you’re successfully managing your suppliers.

Finance-related software will typically let you see your costs in a dashboard. That’s great, but it’s only the tip of the iceberg.

The most important part of managing your tail spend is managing suppliers. That means making sure you’re using the right suppliers, that they’re giving you their best work and that there are no redundancies in the supply chain. That requires a hands-on approach with people overseeing that part of your operation, not a reliance on software.

Software is a good thing, but it cannot be viewed as a cure-all when it comes to managing your organization’s tail spend.

And that’s where we come in.