Total procurement spend resides in the management accounts - NOT the procurement systems.

Your AP, CB and verified GL's (inter company etc.) is the source off ALL spend.

Roy: hammer hits nail !

1) Ratio lies far more towards non-coded (but lesser transactions)
2) Ration lies far more towards bypassing

Multi Billion Rand revenue companies have huge spend areas not going through any procurement system what so ever:
a) Insurance
b) Bank Charges
c) Utilities (Electricity)
d) ... and the list can continue.

In order to establish a type of "spend inteligence" your information captured at AP/CB level should be accurate.

I have been busy with a Spend Analsys investigation for the past few years and South Africa is NOT ready for such spend analysis tools available in US/UK (Ariba, Emptoris ect).

Currently we have found a local (believe it or not) solution assiting in achieveing spend visability.

__________________
Jacques Fourie
Director Operations
Wanama Solutions
+27836450618
www.wanama.co.za
jacques.fourie@wanama.co.za