Cylon

There is enough savings opportunity for virtually all organisations to justify evaluating a Spend Management solution, and determine which approach will yield maximum benefits.

Business Value

Most companies small, medium and large already know that getting their spend under control and managing that spend is fast becoming a prerequisite to remain competitive. The challenges of identifying and reducing inefficiencies can be overcome by utilising the principals of spend management to formulate a spend strategy covering areas such as; spend analysis, strategic sourcing, order management, reconciliation, and supplier management.

How does Spend Management fit into the Business?

The Spend Management solution is a solution that supports the strategic and tactical operations of the procurement division of the organisation, whether it is a one man procurement operation or a division consisting of hundreds of employees. The Spend Management solution also allows procurement to be an integral synchronised element of the overall operation of the enterprise. This is facilitated by integration of the Spend Management solution with the organisations system such as accounting/financial, manufacturing, C.R.M. and E.R.P.

What does Spend Management deliver?

• Lower operating costs
  By operating on-line, organisations are able to reduce paperwork and other processing costs. Customer order entry can also improve order accuracy and help reduce costly product returns. Computer-based ordering also helps reduce pricing errors and expensive calls to customer service personnel.
• Higher revenues
  As well as higher revenues through an increased customer base and market size, some organisations have experienced an increase of as much as 20% more per order when their customers are able to browse through an on-line product listing / catalogue prior to making their order.
• Increased customer base
  This competitive advantage can help win new customers who already use the Internet for procurement, and prefer dealing with vendors who offer on-line procurement.
• New market opportunities
  Creates an opportunity to expand market coverage to reach new markets with 24-hour-a-day, 7-days-a-week procurement ability.
• Enhanced customer service
  Customers now have the opportunity to do business with their vendor when they want to, whether it is during or after normal business hours. This means that they can focus their business hours on making their own profits, and not be restricted by their vendor's call center hours.
• Integration
  Facilitates the integration of members within the organisations' supply chain, by enabling a real-time exchange of information amoung supply chain members. Integrating and synchronizing the organisations' business processes, in terms of procurement, with the business processes of its' suppliers and customers. This streamlines interaction between supply chain members.
• Providing Consistency
  Adopting a companywideconsistent and interoperable interface between trading partners can simplify business processes and reduce the cost of doing business. The aim is not to have identical business processes in every organization, but to ensure that trading partners can interact through an interoperable system.
• Sourcing
  Allows for the sourcing of a particular product (including parts, spares etc) or service from strategic suppliers in a timely fashion by empowering all supply chain members with accurate, real-time information on product or service details.
• Mobility
  The Cylon system allows for complete geographic mobility in terms of business operations associated with spend management / procurement activities. Anytime and anywhere.
• New advertising revenue
  For distributors or manufacturers, the Cylon web site provides them with an opportunity to offer advertising space to the manufacturers whose products they carry, or to manufacturers of complementary products. For a monthly rate, these companies can have advertising banners shown.
• Improve financial controls and contract compliance
  To fully achieve bottom line benefits, buyers need to buy against contracts quickly and easily and companies need to control spend activily through a procurement tool.
  
  For many organisations, a Spend Management system is much less costly than traditional methods.