Overview

Compass, real estate technology provider and largest residential real estate brokerage in the United States, is undergoing a procurement transformation driven by rapid growth and increasing complexity in spend management. Facing challenges in managing vast volumes of procurement projects manually, Compass turned to SpendHQ for a data-driven solution to streamline its operations and empower the team to make strategic decisions backed by detailed analytics.

With limited resources, the team lacked a dedicated tool to track and manage procurement activities.

Challenges

The Compass procurement team was confronted with a series of obstacles that hindered its ability to operate efficiently. The company’s rapid growth led to a surge in the volume of procurement projects and the existing reliance on manual processes—primarily Google Sheets—became a significant bottleneck. Tracking hundreds of projects through spreadsheets was time-consuming and prone to errors, making it difficult to manage real-time project statuses and uncover potential issues. This fragmented approach led to limited visibility into overall spend, with crucial data scattered across various documents and tools. Moreover, the lack of a centralized reporting system made it challenging to measure cost savings and demonstrate value to senior management. These issues, compounded by the pressure to balance workloads effectively among team members, underscored the need for a more robust and integrated solution.

Manual Processes

Procurement efforts were tracked using Google Sheets, making it difficult to manage projects efficiently.

Limited Visibility

Lack of a centralized reporting system made it difficult to provide insights into spend and savings.

Resource Constraints

The team struggled to balance workloads effectively due to the lack of a structured procurement management system.

No Integrated Analytics

Spend data was dispersed, with limited analytical capabilities through Tableau and Power BI, hindering strategic decision-making.

Fragmented Data

Without an integrated tool, key spend areas ,such as credit card and PO spend, were isolated, hampering efforts to drive strategic savings.

Solutions

To address these challenges, Compass turned to SpendHQ, adopting their Performance Management (PM) solution first and later integrating the Spend Intelligence module. The transformation was multifaceted: 

Centralized Project Management

By implementing the PM module, Compass was able to consolidate all procurement projects into one centralized platform. This automation replaced the manual spreadsheet tracking, ensuring that every project was monitored in real time. The streamlined process not only improved efficiency but also allowed for a more balanced distribution of work across the team. 

Enhanced Reporting Capabilities

One of the most significant advantages of SpendHQ’s solutions was the ability to generate custom, data-backed reports. This allowed the procurement team to provide clear, detailed insights into project performance and savings. With these robust reports, Compass could confidently report their achievements to senior executives, turning data into a powerful strategic tool. 

Improved Spend Visibility

The Spend Intelligence module further integrated all facets of spend—covering PO, non-PO, and credit card expenses—into a single, unified view. This comprehensive perspective enabled the team to identify previously unnoticed cost-saving opportunities and negotiate more favorable terms with suppliers. 

Future-Ready Integration

The solution’s compatibility with other systems, such as contract management and ERP platforms, paved the way for a more seamless, end-to-end procurement process. This not only enhanced current operations but also set Compass up for future growth and technological integration. 

Together, these solutions transformed Compass’s procurement function from a manually intensive operation into a streamlined, data-driven powerhouse, setting the stage for more strategic decision-making and significant cost savings. 

Results

The transformation driven by SpendHQ’s integrated platform has yielded impressive results for Compass, enabling the procurement team to do more with fewer resources. The seamless integration of spend visibility with performance management not only allowed for better decision-making but also significantly increased operational efficiency. Key outcomes include: 

Smooth Onboarding and Deployment: 

• A structured 6-8 week deployment period for the PPM module ensured a quick transition from manual processes. 
• Hands-on support helped develop custom reports tailored specifically to Compass’s needs.
• A collaborative partnership fostered long-term value and successful adoption across the organization. 

Enhanced Project Management

• The centralized platform streamlined tracking of procurement initiatives, ensuring projects were completed on time. 
• Optimized workload distribution meant that the team could operate more effectively, even with leaner resources. 

Improved Spend Visibility

• The Spend Intelligence module provided a comprehensive view of total spend—including PO, non-PO, and p-card expenses—allowing for better identification of cost-saving opportunities. 
• This holistic view enabled more strategic supplier negotiations and faster decision-making. 

Data-Driven Decision Making and Increased Efficiency

• Real-time reporting capabilities empowered the procurement team to plan strategically and communicate savings achievements confidently to senior management. 
• With a significant reduction in time spent on administrative tasks, the team could focus on high-value initiatives that drive greater overall impact. 
   

Ultimately, Compass not only surpassed its savings target—achieving $12.7 million against a $10 million goal—but also established a framework where strategic insights and operational efficiency work hand in hand to deliver greater value with fewer resources.