Research firm Hobson & company dconducted an independent research on SpendHQ and found out that a customer with $2B in total spend volume and $1B in average annual addressable spend could repay the cost in less than 5 months which generating a revenue of over 660% in three years.
SpendHQ, the best-in-class Spend Intelligence and Procurement Performance Management solutions provider, commissioned an independent study with research firm Hobson & Company to provide procurement teams with data from real-world customer experiences that helps them build their business case for high-ROI spend analysis and procurement performance tracking.
The Hobson research found that with SpendHQ’s spend intelligence, a representative customer with $2B in total spend volume and $1B in average annual addressable spend could pay back the cost in less than five months and generate an ROI of over 660% in three years. With SpendHQ’s procurement performance management (PPM), a representative customer with the same total spend volume and average annual addressable spend could pay back the cost in less than three months and generate an ROI of over 814% in three years.
To arrive at those calculations, Hobson in late 2023 conducted in-depth interviews with senior procurement staff across dozens of established customers located worldwide, to uncover all the areas of savings and value and then quantify the total positive impact procurement would have on the business with those solutions. The study found that challenges leading to areas of untapped ROI potential included missed savings opportunities in maverick and unmanaged spend, inefficient data analysis across disparate systems, time-consuming work to track progress of procurement initiatives and report outcomes, and difficulties measuring supplier diversity efforts.
New #procurement ROI calculator shows how @SpendHQ customers can achieve a potential #ROI of 660% with spend intelligence and 814% with procurement performance management.
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“SpendHQ’s Procurement Performance Management solution is the backbone of our sourcing digital landscape, where we can monitor all our projects, track our performance, and keep key sourcing data shared across our organization,” said Cédric Le Savéant, chief procurement officer at Technicolor Creative Studios. “Since our implementation more than two years ago, the tool is fully embedded into our team like ‘the 12th man’ supporting us.”
SpendHQ now offers a self-service Procurement ROI Calculator, developed in collaboration with Hobson, to help solution researchers and decision makers instantly see the value potential for their organization and the multiplier effect they can generate even with current staffing levels. Interested companies can download a personalized report based on their own data inputs, which can help them assess, prioritize, and build their own business case to share internally with procurement and key stakeholders.
Hobson’s study also summarized the average value realized by using SpendHQ to address procurement productivity challenges, including:
- 80% average time savings for collecting and analyzing disparate spend data
- 60% average time savings on tracking and statusing projects
- 50% average time savings aligning with finance on procurement’s savings outcomes
- 30% average time savings on reporting against supplier diversity goals
- 30% average time savings on prioritizing projects and allocating resources
“Procurement teams continue to play a crucial role in contributing to an organization’s overall top- and bottom-line value. But many teams still struggle with disparate data housed across inefficient tools that make it difficult to show finance and other key stakeholders where the money lies,” said Jason Treida, SVP, Customer Value Team at SpendHQ. “The Hobson & Company study solidifies our commitment to help our customers turn newfound spend insights and procurement processes into transformative initiatives for both financial and non-financial value creation.”
SpendHQ’s Strategic Procurement Platform is accelerated by AI and machine learning to categorize spend data using procurement best practices so it can quickly convert insights into the next procurement priorities. The platform has earned several badges by software marketplace G2, including the Winter 2024 High Performer, Winter 2024 Best Support and ‘Users Love Us’ badges, underscoring its commitment to quality and customer satisfaction. In 2023, SpendHQ’s impact on procurement grew to more than 500 customers globally, $1 trillion of spend data analyzed, and 135,000 procurement projects tracked and measured representing more than $210 billion in spend initiatives for its customers.
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