Spend analysis is the application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement
Spend analysiscan be defined as the process of identifying, gathering, cleansing, grouping, categorizing and analyzing your organizations spend data with the sole purpose of decreasing procurement costs and improving efficiencies. Using real-time data and analytics will give you the right information you need you to save money and gain efficiency
Spend analysis is the application of quantitative techniques to purchase data in an effort to better understand spending patterns and identify opportunities for improvement. It is used to answer a variety of questions, examples are; what categories of products make up the bulk of company spending, how much are we spending with various suppliers, what are our spending patterns like across different locations? where do we spend our money? It allows the organization to identify areas for cost reduction and process improvement, how the company can identify and manage their spending.
