In contrast to sophisticated spend management solutions for direct sourcing categories, indirects are still neglected by many companies. Excel and email have been the most common ‚tools‘ to manage their service spend for many years. Just recently – mainly driven by increasing compliance risks and administrative burdens – larger companies have started to switch to vendor (or freelancer) management systems (VMS). Main advantages compared to Excel system include:

  1. Automating compliance check routines
  2. Increasing efficiency by reducing administrative burdens
  3. Creating transparency by tracking relationship history
  4. Realizing savings by cost benchmarking, time tracking and performance based discounts
  5. Increasing impact with performance management

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