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All Rights Reserved

In additon to the complexity and difcultes with the fnancial controls
of managing SOW spend, many other challenges plague procurement
when atemptng to gain control and visibility, such as:
Inconsistent sourcing processes
Lack of change order tracking
No system to track consultant access
No budget controls during the project
Difculty reconciling invoices
No visibility into project billing status and completon status
I QN F OR S OW
Gain Full Control Over Statement of Work Spend
IQNavigator provides intuitve technology and innovatve solutons that allow the worlds best companies to
intelligently manage their procured services through their ecosystem of people, partners and suppliers.
What is SOW Spend?
Statement of Work (SOW) spend is any services purchases from a vendor
based on a contract that specifes the promised deliverables, tming and
prices to be paid. It is ofen called projects spend. Large enterprises spend
many millions of dollars per year on SOW in areas such as consultng, IT
services, audit services, outsourcing, and feld services ofen 5% or more
of their overall purchases.
This huge amount of SOW spend is growing rapidly as enterprises contnue
to focus on their core competencies, and engage specialists for projects that
require new skillsets or additonal capacity.
Why Manage SOW Spend?
With SOW spend growing rapidly, many enterprises dont have complete
visibility into the magnitude of SOW spend, or control over it in fact, the
Aberdeen Group has found that 76% of enterprises report they are not
fnancially controlling their SOW services purchases.
A GROWING NEED
Facts from Aberdeen
Research validate the
need for gaining full
control over SOW spend:
2% to 7% of operatng
budgets are spent for
business consultng services
76% of enterprises are
not fnancially controlling
their services purchases
50% of all spend managed
by VMS is SOW based,
and growing quickly
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Inconsistent sourcing process:Most SOW decisions
are made by line-of-business managers, who usually
dont have the tme or skillset to drive a compettve-bid
process, ofen resultng in higher costs than necessary.
Lack of change order tracking:Many SOW contracts
have adjustments during the project, changing dates,
deliverables and sometmes pricing. Many tmes these
are informally agreed to and are not recorded or
tracked, resultng in end-of-project uncertainty around
fnal payment amounts and whether the supplier
delivered everything they were supposed to.
No system to track consultant access:Consultants ofen
need access to the clients buildings and IT systems, and
are given access cards and credentals. However, there is
ofen no system of record to track these workers and
ensure that access is turned of when the SOW project is
over, resultng in security compliance exceptons.
No budget controls during the project:Typical
purchase-order methods have a limit on overall SOW
project spending, but do not have controls to make
sure that each milestone and tme period has budget
limitatons. As a result, the only budget control is at the
very end of the project, when any past overruns cannot
be addressed and additonal money can be needed to
fnish the project.
Difculty reconciling invoices:SOW invoices are
notoriously difcult to reconcile, because the original
contract (and any change orders) has to be tracked down,
each invoice line-item re-calculated by hand based on
the SOW prices, and each deliverable represented on the
invoice compared to the contract by the project manager.
As a result, SOW invoices are usually not reconciled,
leading to invoice leakage from inaccurate prices and
deliverables that are billed but not yet approved.
No visibility into project billing status and completon
status:Each SOW project can have its own delivery
tmetable and invoicing frequency, and there is no
system of record that shows the status of each projects
billing status and completon status. As a result, negatve
surprises are found very late, and there is no overall
dashboard of project statuses and payment statuses.
I QN FOR SOW
Enterprises who have investgated their SOW processes have found there are usually signifcant issues in several areas that
raise costs and create compliance challenges:
A New Approach to Managing SOW Spend
Fortunately, leading Vendor Management Systems (VMS) like IQNavigator now enable enterprises to manage and control the end-to-end
lifecycle of SOW spend, including: sourcing, contractng, change control tracking, consultant tracking, and invoicing.
The IQNavigator VMS processes over $4 billion per year of SOW spend around the world for clients, fully controlling all aspects of the
SOW lifecycle and as a result providing cost savings, complete compliance and unmatched visibility into SOW spend. IQNavigator helps
many of the worlds leading brands Buy Services Beter for their SOW spend.
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I QN FOR SOW
Best-in-Class SOW Spend Control
The IQNavigator VMS is built upon a universal Services Procurement foundaton to manage all types of services, with deep functonal
capabilites and broad feature sets to automate the management of the complexites and nuances of SOW spend around the world.
Key areas of automaton include:
RFx functonality extends an easy-to-use and controlled sourcing process to the end-users you want, automatng the sourcing and
vendor selecton processes for cost savings, compliance and visibility.
Supports individual category sourcing needs: compettve bidding,
comparatve evaluaton, preferred vendors, sole or master sourcing
Online collaboraton with suppliers
Evaluate and compare supplier bids
Easily create SOW contract from winning bids
Capture change orders throughout the SOW project lifecycle. SOW contracts ofen have change orders during project delivery, and
IQNavigator is the system of record to capture every change order, gain needed approvals, and ensure compliance to each change
order. The current agreed-upon scope and deliverables, invoice calculatons and budget details, tmeframes and SLAs are all held in
IQNavigator for comprehensive end-to-end SOW project control.
Confgurable approval workfows for change orders
Full visibility into each contract version and change
Eliminate contract leakage and capture negotated cost savings by ensuring every invoice line item uses the correct rates and
calculatons, and never goes over the appropriate budget details through a unique self-billing process.
Master pricing schedules are automatcally leveraged for SOW development
Every invoice line item is calculated from approved deliverables and the SOW contract in IQNavigator,
ensuring 100% invoice accuracy with no manual reconciliaton
Detailed budget limits are enforced at invoice creaton, ensuring the project never goes over budget
Track SOW workers with a closed-loop process to provide complete visibility and security controls over the suppliers workers who
are delivering the SOW projects. As part of IQNavigators External Workforce Control, every worker is ensured to be on-boarded
correctly, tracked during their assignment, and of-boarded with security accesses turned of.
Confgurable on-boarding and of-boarding processes
Integrate with security and provisioning systems for security management
Closed-loop worker tracking to ensure access is removed when the project ends
Hold vendors accountable to contracted terms, promised deliverables and desired outcomes.
Track and refect SLA bonuses and penaltes on the invoices
Only approved deliverables are invoiced to ensure you get what you pay for
Improve visibility on the full spectrum of SOW project status, supplier performance, and detailed spend data. IQNavigator provides
the visibility and leverage needed to identfy and negotate cost savings and service quality improvements.
Track vendor spend & leverage across business units and geographies
Identfy and promote good vendor performance to send more work to the best-performing vendors
Track vendor performance at the engagement and relatonship levels and leverage in future sourcing processes
Improve satsfacton of all stakeholders with an easy-to-use process for internal end-users, additonal opportunites and tmely
payments for suppliers, and much improved control and visibility for budget owners and fnance controllers.
Track vendor spend & leverage across categories, departments
Identfy / promote good vendor performance, avoid vendor weaknesses
Track vendor performance at the engagement and relatonship levels and leverage in future sourcing processes
VISIT US AT:
IQNavigator.com
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CONTACT US:
Corporate Headquarters
6465 Greenwood Plaza Blvd., Suite 800
Centennial, CO 80111, USA
Phone: 877-267-0905
Internatonal: +1 303-563-1500
E-mail: info@iqnavigator.com
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I QN FOR SOW
What to Look For When Controlling SOW Spend
While many VMS systems claim to manage SOW spend, gaining the full benefts of SOW
management cost savings and control, compliance and visibility requires many system
elements that are must-haves for complete SOW spend control:
Complete SOW lifecycle controls, from fexible and easy-to-use RFx capabilites to
change orders and invoicing
Capture all change orders as the system of record for the SOW contract, including
approvals and change history
Easily track all workers on an SOW project for security and on-boarding compliance,
including non-billable and ofsite workers
Global invoicing capabilites, including taxaton and multple-currency SOWs
Single system of record for contngent workforce, SOW and other types of services
for automatc roll-up reportng on spend and headcount, as well as consistent
controls and user experience
Enterprise-grade fexibility and confgurability for approval workfows, web page
layouts, system integratons and cost allocatons to support an enterprises unique
requirements, as well as provide fexibility for diferent confguratons by geography
and by type of services spend
Controlling SOW spend is not only desirable, it is now achievable and highly benefcial
with compelling cost savings and control, compliance improvements, and increased
visibility and efciencies for all stakeholders.
For more informaton or to schedule a live demo, visit iqnavigator.com
COST SAVINGS
The average IQNavigator
client captures 15-18%
in cost savings on SOW
spend in first year of
implementation:
Financial company saved
12% to 55% per project
using compettve bidding
capabilites
Another fnancial company
saved $5M implementng
standardized buying
processes and using
compettve bidding and
automated billing features
Tracking and automatcally
reconciling supplier
invoices saved aircraf
manufacturer $3M
annually
Canadian oil company
eliminated $3M in late
payment fees
Energy utlity saved
$1.5M in legal service
fees using automated
contract and rate
compliance