While spend management has long been a way for AP and purchasing department’s to improve the bottom line, many are overlooking a key spend category – meetings and events.

Spend management typically involves consolidating spending with strategic vendors in order to secure the best prices and contracts. The purchasing department will use data provided from AP in contract negotiations.

According to a recent article published in Purchasing Magazine, by consolidating meeting spend, organizations can save about 20 percent the first year and then 7 percent annually. To put these figures into perspective, the article indicates that for many companies, meetings and events expenses amount to between 1 and 2 percent of total sales.

Despite the benefits, the author states that in a recent survey performed by Purchasing Magazine, less than half of participants are involved in managing meeting spend. While the article focuses on the purchasing department’s role, the spend data that AP can provide is instrumental in helping purchasing negotiate with vendors.

The article goes into detail about the benefits of managing event spend, including how strong contract negotiations can help avoid costly event-cancellation fees and how some organizations might consider shifting from live meetings to less-expensive teleconferencing.

See the full article when it’s published in the September 17th issue of Purchasing Magazine.