WBSRocks: Business Growth with Enterprise Software and Digital Transformation
WBSRocks podcast features in-depth conversations on customer experience, digital transformation, supply chain, eCommerce, industry 4.0, and enterprise software categories such as CRM, ERP, or analytics suites. The purpose of the show is to help CFOs, COOs, CEOs, and business owners with their daily commercial, operational, or financial challenges by taking a deep dive into business cases and processes, technology strategy and architecture, transformation initiatives, and business models. The show also offers an independent analysis of technology trends, various enterprise software vendors and solutions, and their mergers and acquisitions. Subscribe today to stay on top of digital transformation trends!
WBSRocks: Business Growth with Enterprise Software and Digital Transformation
WBSP147: Grow Your Business by Forecasting the Outcome of Strategic Sourcing w/ Edmund Zagorin
As a procurement leader, if you are too focused on seeking discounts, sometimes you might lose sight that the cost of spend could be higher than the discount you might be seeking. Also, as the number of SKUs increases in your organization, the SG&A costs rise at an increasing rate than your top line because of increased marginal overhead with each SKU. The cost of spend is a key metric that manufacturers and distributors need to measure and control. Or you might hit the growth inflection point.
In today's episode, we have our guest, Edmund Zagorin, who describes why the cost of spend is an important metric for some of the strategic sourcing categories. He also touches on various strategic sourcing terms and processes, such as how to interpret the implications of purchase price variance KPI and why it's important. Finally, he touches on why businesses should be forecasting the outcome to reduce the cost of spend and better manage supplier relationships.
For more information on growth strategies for SMBs using ERP and digital transformation, visit our community at wbs.rocks or elevatiq.com. To ensure that you never miss an episode of the WBS podcast, subscribe on your favorite podcasting platform.