Annual budgeting and planning is undeniably essential even when it is not the most exhilarating part of the job.
As the year winds down from October to December, procurement departments prepare for the upcoming year’s projects. Aligning budgets with broader business strategies, market entry plans, and both financial and non-financial targets are important.
Purchasing officers must also factor in economic volatility, unexpected supply chain hiccups, and workforce-related issues when strategising for upcoming projects.
Budgeting without taking into account the real-time organisational expenditure is akin to mere goal-setting. Given inflationary pressures and resource shortages, precision in budgeting becomes vital.
SpendHQ recently revealed leadership teams should pinpoint spending patterns and leverage them to project potential cost savings judiciously. Avoid making presumptive savings for the New Year. Instead, analyse the spending trends observed in recent months and interpret them pragmatically.
The publication recommended questioning whether order volumes surged due to inflation, and any unexplored contractual opportunities. Have a clear understanding of the organisation’s expenditure patterns instead of making assumptions.
Transition towards real-time spend visibility to help prioritise pivotal projects while reallocating funds from less critical outlays.