Finance and procurement leaders are faced with a constant balancing act: how do you invest in growth without losing control of spending? Turns out, at least part of the answer has been sitting right under your nose: spend management.
According to a new report we developed with CFO Dive, finance leaders are already using spend management as a growth strategy, not just a cost cutting tool. It’s optimizing resources and improving efficiency across their organizations. We also learned, however, that as beneficial as the practice is, many companies are still slow to invest in it, or are underinvesting, according to survey respondents. Let’s take a look at why spend management could be the missing piece in your 2025 strategy—and how to advocate for the resources you need to make it successful.
1. Efficiency That Powers Growth (Yes, Really)
We get it. We know spend management doesn’t sound as exciting as flashy growth tools like marketing automation or sales software. But here’s the kicker—84% of finance executives who’ve implemented spend management say it’s extremely effective in accelerating their digital transformation. They’re not just saving time and money; they’re powering strategic growth.
In fact, 78% of finance leaders in the report directly link their spend management efforts to revenue growth. That’s a wake-up call. Optimizing how your company spends its money isn't just about cutting back on costs—it’s about enabling growth across the board.
Key Takeaway: Spend management is evolving from a back-office task to a front-line growth driver. If you’re not prioritizing it, you’re leaving money—and efficiency—on the table.
2. The Spend Management Investment Gap: What’s Holding Us Back?
Despite the clear benefits, finance teams are still struggling to get internal buy-in. The report found that companies are investing in growth software at a rate of 3:1 compared to spend management tools. That’s a large discrepancy—especially considering the proven ROI. Finance leaders are stuck advocating for tools that could unlock significant efficiencies while the bulk of the budget goes to other departments.
It’s not that finance leaders don’t see the value. In fact, 99% of them say their companies are operating efficiently, thanks in part to spend management software. But 68% report that inadequate investment is a major roadblock to realizing even greater gains. It’s like trying to sail a boat with the anchor still down. You’ll move forward, but with a lot more drag than necessary and eventually, and eventually a broken boat.
Key Takeaway: Companies are pouring resources into growth tools, but real efficiency gains are being missed. Closing the investment gap in spend management could unlock the next level of growth.
3. Turning Data into a Competitive Advantage
Data is king, and spend management is the throne that holds it all together. With the right spend management platform, you’re not just automating approval workflows or managing supplier contracts. You’re gaining full visibility into where your money is going—and more importantly, where it shouldn’t be going.
The report shows that finance teams using modern spend management tools have 99% visibility into their vendor contracts, giving them control over every dollar spent. This visibility translates directly to better negotiation power, improved efficiency, and reduced risk.
Key Takeaway: Spend management isn’t just about managing expenses—it’s about using data to drive smarter decisions. Without this visibility, you’re flying blind in an increasingly complex economic landscape.
4. Efficient Growth Starts Here
Let’s talk about burn multiples. For finance leaders, this is a key metric for efficient growth. Companies using spend management software are seeing burn multiples of 1.4 or less—meaning they’re growing efficiently and minimizing waste. In contrast, teams still relying on manual processes or outdated systems are missing out on these gains.
And it’s not just about numbers on a spreadsheet. Every hour your team spends wrestling with clunky procurement systems is an hour they’re not focusing on strategic initiatives. Every missed supplier discount is cash left on the table. Modern spend management tools free up time and resources to focus on what really matters—driving growth.
Key Takeaway: Spend management is a crucial driver of efficient growth. If you’re still relying on outdated systems, it’s time to reconsider your priorities for 2025.
The Bottom Line: Don’t Sleep on Spend Management
As we head into 2025, companies face increasing pressure to balance growth with efficiency. The most forward-thinking finance and procurement leaders are already leveraging spend management to do both. Whether it’s cutting down on manual processes, improving supplier negotiations, or simply getting better visibility into where the money is going, spend management is proving to be a key asset for organizations looking to stay competitive.
So, what’s your next move? Are you ready to take control of your company’s spending and turn it into a growth engine?
Download the Full Report
Want to dig into all of the insights? Download the full Tropic and CFO Dive report to get the data you need to make spend management your competitive advantage in 2025. Learn how finance leaders just like you are using it to accelerate growth, optimize resources, and drive efficiency—without breaking the bank.
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