Maximizing Spend Under Management: A Strategic Procurement Imperative

In today's rapidly evolving business landscape, procurement teams are increasingly recognized as strategic partners rather than just cost centers. At the heart of this transformation lies a critical metric that savvy finance leaders are prioritizing: Spend Under Management (SUM). This powerful indicator measures how much of your organization's total spending is actively managed through strategic procurement processes—and it's revolutionizing how businesses approach financial operations in 2025.

Understanding Spend Under Management: The Foundation of Procurement Excellence

Spend Under Management refers to the percentage of an organization's total expenditure that is actively monitored, controlled, and optimized by the procurement function. Effective SUM provides procurement teams with visibility and control necessary to make strategic decisions that impact the entire organization's financial health.

Recent data from McKinsey reveals that spend under management by procurement teams has increased by 50% over the past five years, reflecting growing awareness of its importanceHowever, significant untapped potential remains for most companies looking to optimize this critical metric.

The Business Impact of Optimizing Spend Under Management

The benefits of increasing your spend under management extend far beyond simple cost control:

1. Enhanced Supplier Relationships

Increasing spend under management helps build stronger vendor partnerships. When procurement teams consolidate purchases with preferred suppliers, they strengthen strategic relationships, leading to better terms, improved service levels, and increased innovation opportunities.

2. Streamlined Processes and Reduced Errors

39% of invoices contain errors when processed manually.By bringing spend under management through automated solutions, businesses significantly reduce error rates. This is particularly critical considering that 37% of businesses still rely on paper invoice receipts, increasing both administrative burden and potential for errors.

3. Process Efficiency Improvements

The average time to process an invoice manually is 14.6 days.Companies that implement strategic spend management through automation can dramatically reduce this timeframe, freeing up resources for more strategic initiatives.

The Payment Revolution: Where B2B Payments and Spend Under Management Intersect

The management of B2B payments represents a critical component of spend under management—yet it remains one of the most challenging aspects of procurement. 68% of businesses still manually enter invoice data into their ERP software, and the average cost of processing an invoice manually is $15.

This is where Finexio's innovative AP Payments as a Service model creates transformative value for procurement teams looking to increase their spend under management.

How Finexio Enhances Spend Under Management Through Payment Innovation

Finexio stands at the intersection of procurement excellence and payment optimization, offering solutions that significantly enhance spend under management capabilities:

1. Embedded Payment Solutions Drive Adoption

As a purpose-built platform for embedded payments, Finexio seamlessly integrates payment processes with existing procurement systems. This integration is critical as more companies move toward automation—with 20% of teams already fully automated and 41% planning to automate their payables processes within the next 12 months.

2. AI-Powered Supplier Enablement

Finexio's AI-driven approach to supplier enablement has achieved remarkable results. Their predictive models deliver 93% accuracy in identifying suppliers likely to accept virtual cards, enabling procurement teams to strategically target suppliers for payment optimization.

3. Transforming Paper-Based Processes

Finexio's proprietary Card by Mail program addresses one of the most persistent challenges in procurement—reducing paper-based payments. With 48% of small businesses still using paper invoices,Finexio's solution enables companies to transition suppliers from paper checks to virtual card payments, bringing previously unmanaged spend under strategic control.

4. Superior Virtual Card Adoption Rates

While virtual card payments represent only 7% of US B2B payment volume industry-wide, Finexio's Card by Mail solution consistently delivers supplier acceptance rates of 40-61%, significantly outperforming industry benchmarks.This higher adoption rate directly translates to more spend under management and greater financial returns for procurement teams.

The 2025 Roadmap: Strategies for Procurement Leaders

As procurement teams look to enhance their strategic value in 2025, maximizing spend under management should be a top priority. Here are key strategies to consider:

1. Focus on Payment Transformation

Virtual card payments are projected to see a 21.3% CAGR from 2023-2028, with an impressive 487% volume growth expected during this period.Payment modernization represents a significant opportunity to increase spend under management.

2. Leverage Embedded Automation

The global accounts payable automation market was valued at $3.08 billion and is projected to grow at a compound annual growth rate (CAGR) of 12.8% from 2024 to 2030.Organizations that embrace this trend will gain significant advantages in managing procurement spend.

3. Prioritize Supplier Enablement

As Finexio's experience demonstrates, strategic supplier enablement can dramatically increase electronic payment adoption. With the right approach, organizations can achieve virtual card adoption rates far exceeding industry averages.

4. Measure and Optimize SUM Continuously

Only 9% of respondents believe their method of measuring AP metrics and KPIs is extremely effective.Implementing robust measurement systems for spend under management is essential for continuous optimization.

Conclusion: The Strategic Imperative

In 2025, procurement teams have an unprecedented opportunity to drive organizational value through enhanced spend under management. The convergence of payment innovation, automation technologies, and strategic supplier enablement creates powerful new capabilities for finance leaders.

Finexio's vision—a world where finance leaders only need to decide "what" to pay while Finexio seamlessly handles the "how" and "when"—is becoming reality for forward-thinking organizationsBy partnering with Finexio, procurement teams can transform their approach to spend under management, unlocking significant cost savings, revenue opportunities, and strategic advantages in today's competitive business environment.

As you evaluate your organization's spend under management metrics, consider how Finexio's innovative AP Payments as a Service model could help transform your procurement function from a cost center to a strategic driver of organizational value.

Sources

1. "What is Spend Under Management (SUM)?" Airbase, 7 Apr. 2025, www.airbase.com/blog/spend-under-management-procurement-kpi
2. "Procurement's Inflection Point: What to Expect in 2025." Art of Procurement, 5 Jan. 2025, artofprocurement.com/blog/podcast-procurements-inflection-point-what-to-expect-in-2025
3. "59 Accounts Payable Statistics For 2025." DocuClipper, 5 Mar. 2025, www.docuclipper.com/blog/accounts-payable-statistics/
4. "Infinite Value Beyond a 3.14% Virtual Card Revenue Share." Finexio, 14 Mar. 2025, www.finexio.com/blog/is-3-14-revenue-generation-from-virtual-cards-possible
5. "Finexio Increases Virtual Card Adoption to 40% With Virtual Card by Mail." ACCESS Newswire, 23 Apr. 2024, www.accessnewswire.com/newsroom/en/banking-and-financial-services/finexio-increases-virtual-card-adoption-to-40-with-virtual-card-by-ma-855581
6. "Finexio Expands Frictionless Card by Mail Solution, Driving 60%+ Virtual Card Acceptance." Morningstar, 29 Apr. 2025, www.morningstar.com/news/accesswire/1018230msn/finexio-expands-frictionless-card-by-mail-solution-driving-60-virtual-card-acceptance
7. "HOW FINEXIO WILL DRIVE B2B PAYMENT INNOVATION AND GROWTH IN 2025." Finexio, 1 Nov. 2024, www.finexio.com/partner-news/how-finexio-will-drive-b2b-payment-innovation-and-growth-in-2025
8. "Finexio's Value Proposition." Finexio Partner Resources, www.finexio.com/partner-resources/finexios-value-proposition