.png)
.png)
Even with every dollar accounted for and every policy adhered to, indirect expenses are elusive, unpredictable, and outside the scope of control. The numbers are disjointed, and the data is scattered across multiple spreadsheets and platforms.
You implement policies and set budgets, but still have to deal with — autonomous and maverick spending, which puts you in an uncertain and reactive position.
Autonomous spending is within the boundaries of policies but exceeds expected limits and budgets. Money moves outside the defined parameters without a clear trail. Maverick spending, on the other hand, means unapproved, rogue expenses that go beyond every budget constraint.
But adjusting these deviations isn’t just about number-crunching; instead creating processes and workflows that make data capture easier, thus simplifying budgeting.
However, with decentralized spending environment, every attempt to create workflows leaves employees either not following through with the process or facing too much friction, leaving expenses to slip through gaps and resulting in unexpected overspending.
Hence, you need a way to manage indirect spending that gives you visibility and control without the constant fear of deviations, friction and delays.
So, this blog post will explore how you can improve procurement processes to create a reliable single source of truth.
This not only supports budgeting at the end of each season but also provides real-time visibility, ensuring you're always prepared and proactively managing company spending.
Why Real-Time Visibility Into Indirect Spending is Non-Negotiable
Procurement budgeting is looking at past spending, understanding industry trends, and factoring in team needs to estimate future expenses. But this task becomes increasingly difficult when the data required to make informed decisions is missing or incomplete.
With indirect spending, the autonomy granted to teams means they make purchases without following a formal approval process, creating fragmented data.
But it is not just about missing data at the end of the season.
With limited visibility about where, when, and why expenses are being made, not only do procurement teams miss the opportunity to consolidate spend, cut waste, and negotiate better deals, but it also increases the likelihood of out-of-policy spending and compliance breaches.
As a result, procurement teams are reactive, leaving them to address issues only after they have occurred. Compliance violations go unnoticed until it’s too late, and resources are wasted due to inefficient practices.
In the end, their ability to keep the budget on track is compromised, and their effectiveness is questioned.
Achieving Real-Time Visibility Without Sacrificing Efficiency
A clear workflow enables procurement teams to lay out each step of the process, establish rules and checks, and flag out-of-policy spending early on. This promotes a proactive approach, helping them flag non-compliant expenses in real time, save money, and identify opportunities for cost savings and better deals.
“We haven’t had a single transaction that when it’s received and gone through the approval process that we’ve said, oh my god, that shouldn’t have been spent.”
~ Christopher Anthony, Global Business Controller at Platinum Heritage
However, visibility should not come at the cost of efficiency.
While using manual processes or rigid policies to control spending seems like a safeguard against out-of-policy spending, it creates friction, slowing procurement cycles. Frustration builds as employees can’t easily access the needed resources or jump through hoops to get approval for necessary purchases.
Visibility should empower teams—not slow them down.
Instead, teams need the freedom to make spending decisions, paired with a system of accountability that ensures every expense is traceable and compliant.
When expenses are logged in as they are spent, with real-time budget checks in place, procurement teams get control and visibility over spending. They no longer need to wait for end-of-month reconciliations or sift through scattered data to understand financial patterns.
With real-time visibility, procurement teams ensure budgets remain on track while supporting team needs efficiently rather than constantly putting out fires.
Building a Single Source of Truth With Reliable Data and Processes
An ideal system consolidates data and simplifies workflows, making procurement a seamless experience for everyone involved—employees, managers, and the procurement team.
By bringing all stakeholders into a single, intuitive platform, you turn indirect spending from a source of frustration into an opportunity for strategic growth.
For Employees: Friction-Free Requests
Employees are the first to feel the pinch of a complex procurement process. From complicated forms to chasing approvals, their focus shifts from work to paperwork.
A better approach enables them to:
- Submit requests effortlessly: Simple, intuitive forms with pre-filled data based on pre-defined rules.
- Understand limits upfront: Clear visibility into budget thresholds ensures compliance at the source.
- Track progress easily: Real-time updates eliminate uncertainty, letting employees focus on their core work.
For Managers: Instant Approvals Without Hassles
Managers don’t have time to sift through disorganized requests or play email tags for clarifications.
A streamlined system supports managers with:
- Automated workflows: Configurable approval chains based on spending categories or departments ensure requests are routed correctly.
- Real-time notifications: Instant alerts for pending approvals help managers act without delays.
- Centralized dashboards: All relevant details, such as budgets, justifications, and vendor info, are available in one place for quick and informed decisions.
For Procurement Teams: Full Visibility and Better Insights
Procurement teams need a consolidated view of all spending activity to ensure compliance and uncover savings opportunities.
Here’s how they benefit:
- All data in one place: A unified platform that captures every request, approval, and transaction ensures there are no blind spots.
- Simplified collaboration: Involve stakeholders and other approvers seamlessly, avoiding email chains and scattered communication.
- Actionable insights: Real-time access to accurate data helps procurement teams analyze trends, negotiate better contracts, and eliminate rogue spending.
For Finance Teams: Transparent Data and Effortless Reconciliation
Finance teams need a system that helps them manage spending while keeping financial records accurate and up to date.
A well-integrated procurement system addresses these needs with:
- Clear audit trails: Detailed records and full visibility into every transaction allow finance teams to ensure compliance and provide accurate reports during audits.
- Centralized expense management: All spending data is captured in one place, ensuring accuracy and eliminating manual reconciliations.
- Real-time budget insights: Monitor and manage budgets effortlessly, spotting overspending or savings opportunities as they arise.
How to Manage Corporate Card Spending in a Decentralized Ecosystem
Unlike other indirect procurement expenses that follow a centralized approval process, corporate card spending is inherently tricky, with teams across departments using cards independently for various purchases. By the time finance teams get access to transaction data, it’s too late to stop unapproved purchases or spot spending trends in time.
This lack of visibility leads to overspending, non-compliance, and rogue purchases slipping through the cracks. Even with ERP systems, the approach remains reactive—handling unapproved purchases only once they’ve already been made.
The focus shifts to cleaning up the mess rather than preventing it.
How Pluto’s Corporate Card Solves These Problems
Pluto offers a more proactive solution to managing corporate card spending—combining visibility, control, and seamless integration into your procurement process.
Pluto’s budget-controlled corporate cards are designed to give you total control without stifling employee autonomy.
Here’s how Pluto makes corporate card management simpler, more effective, and less prone to risk:
Predefined Rules & Budgets
With Pluto’s cards, you can set specific limits for each employee’s card based on the transaction amount, vendor, or category. This ensures that your teams stay within their allocated budgets and prevents any surprises when the monthly statement arrives.
Approval Flows
Pluto lets you define approval workflows, triggering reviews whenever a purchase meets specific criteria. Whether it’s for a single employee or a complex organizational hierarchy, managers and finance teams can approve or reject transactions in real time, ensuring full compliance before any expense is processed.
Real-Time Tracking
Unlike traditional systems that rely on month-end statements, Pluto gives real-time visibility into all corporate card transactions. This means procurement and finance teams can access spending data as it happens, eliminating the need for constant follow-up and manual tracking.
No more hunting down invoices or manually entering data. The system actively enforces spending policies while giving procurement teams the tools to manage expenses proactively and prevent rogue purchases.
With Pluto, spend management is no longer a burden—it’s a seamless, automated process that ensures compliance, optimizes budgets and empowers teams to make smarter decisions faster.
Gaining Visibility and Control Over Indirect Spend
Managing indirect spend is challenging when expenses are scattered across departments, teams, and vendors, making it difficult to track purchases on time and spot deviations or unapproved transactions.
Pluto simplifies this process by providing real-time visibility into all indirect spend, consolidating expenses into a single, reliable source of truth. This centralization not only enhances budgeting accuracy but also allows teams to monitor spending as it happens.
Instead of waiting for month-end statements, you instantly spot any discrepancies or unexpected purchases and address issues before they escalate.
With Pluto, there’s no need to worry about fragmented data or delayed responses to ad-hoc purchases. The platform ensures that procurement teams handle spending in real time, making it easier to stay within budget and enforce spending policies effectively.
Book a demo today to see how Pluto can streamline your indirect spend management.
