What is Financial Savings Management?

Financial savings management comes under procurement management. It involves projecting the savings of a business based on parameters such as planned strategic sourcing, tracking savings, and mapping the savings to the budget. This helps enterprises control their spending and achieve savings by getting a clear picture of accounts and accordingly planning their strategies.

As a major cog in an enterprise’s financial management strategy, the procurement function has moved from being focused only on savings, to focusing on bottom-line cost management. Procurement also involves helping organizations achieve top-line goals through supplier innovation. The procurement function is now viewed as a trusted business partner to help the business deliver greater value and achieve rapid returns.

Within financial savings management, savings made through strategic sourcing and other cost-reduction measures are monitored. This is known as savings tracking. The process also helps to keep stakeholders informed on the status and results of the various savings measures.

Leveraging Technology 

Financial savings management can be enabled using savings tracking software within procurement software systems which allow users to draft and roll out specific cost-reduction and savings projects. The software helps highlight the scope and savings target of the strategic sourcing program and record its performance.

The savings tracking software within the scope of financial savings management enables enterprises to automate the entire spend analysis process and thus improve its accuracy and efficiency. It systematically aggregates, cleanses, classifies and analyzes the enterprise-wide purchasing data. The software has features like comprehensive savings tracking and reporting capabilities, delivering visibility, dashboards and vital intelligence to all the stakeholders of the business.