According to Suplari’s survey, an alarming 30% find their organizations unprepared to cope with an upcoming economic downturn.
The report also highlights plans and tactics to recession-proof the enterprise.
Suplari, the first AI-powered enterprise financial insights system, today published a new study titled Plans & Tactics to Recession-Proof the Enterprise: Survey of Procurement & Finance Professionals. The report reveals concerns, preparedness and coping tactics for an eventual recession or economic downturn:
- A majority 55% believe the recession will take place before the end of 2020
- There remains an alarming 30% feeling unprepared to cope with a foreseeable recession
- In a downturn, Travel gets most scrutiny, followed by Facilities, Office Supplies and Marketing
- Contract Renegotiation and Vendor Consolidation are the main tactics to optimize spend
- More companies, 8 out of 10, have established cost-savings goals this fiscal year
Finance and Procurement Functions Should Prepare Proactively
The U.S. economy is reaching a record-breaking period of expansion that started 10 years ago. There is a reignited interest to discuss and predict when the next recession could happen. While many fundamentals suggest the economy remains healthy, there are also looming signs of a slow-down, or even a recession. Analysts have been pointing out that executives are concerned that job markets, credit risks and tariff policies could press the economy to decelerate.
“Finance and Procurement professionals operate closely and holistically in relation to the matters of spend management, purchasing activity, savings optimization and risk factors,” said Nikesh Parekh, Co-founder and CEO at Suplari. “They are likely to be the first in their organizations to perceive and deal with the impact of a recession. We’ve conducted this study to give them practical and proactive insights about plans and tactics, beyond the usual macro-economic commentary about recessions in the economy.”
At large, business executives, analysts and the general public will find this study helpful to further estimate the odds and timing for an eventual recession. More specifically, Finance and Procurement professionals can use the report to plan ahead and prioritize practical approaches about:
- Plans to avoid disruption of performance, growth, and profitability
- Strategies and levers to quickly reduce cost and risk
- Specific tactics in each industry sector to deal with a recession
- Categories and budgets that come under greatest scrutiny
“Suplari is committed to equip Finance and Procurement leaders to achieve their financial performance goals,” said Alberto Sutton, SVP of Marketing at Suplari. “We are primarily a technology company. From our vantage point, we can help customers actually implement these approaches revealed in the study. Our AI-powered Enterprise Insights System makes financial sense of spend and sourcing data as well as supplier and contracts activity. The enterprise gains better control and insights to optimize margins, cost, risk and ROI.”
The study Plans & Tactics to Recession-Proof the Enterprise: Survey of Procurement & Finance Professionals is now available at www.suplari.com/recessionsurvey. Readers can join the conversation and share comments at Suplari’s LinkedIn company page.
Suplari provides an AI-powered Enterprise Insights System, indispensable to finance and procurement. The system makes financial sense of enterprise spend, supplier and contracts data, so they gain control and optimize margins, cost, risk and ROI. CFOs, COOs, CPOs and business leaders alike rely on Suplari to gain better spend visibility and operational agility in order to optimize costs, assure compliance and reduce both risk and fraud. People using Suplari are delighted with their modern and fluid user experience, advanced analytics, and AI-assisted insights algorithms to track budgets, consolidate vendors, aggregate demand, negotiate contracts and manage supplier performance. Customers from large Fortune 500 to mid-size enterprises have worked with our dedicated success team to get up and running quickly – from connecting their fragmented data to capturing cost savings. With Suplari, category managers, buyers, auditors, controllers, financial analysts and anyone with budget responsibility become catalysts of value creation in the spend-accountable enterprise. Learn more about Suplari at www.suplari.com.