Spend analysis is the process of reviewing current and historical spending to reduce costs, increase efficiency and improve sourcing and supplier relationships. It involves identifying and gathering spending data from all sources, cleansing and classifying the data, then analyzing the information to understand how the organization is spending its money and where improvements can be made. Spend analysis enables organizations to answer crucial financial questions such as: What are we spending money on? Who are we spending money with? Are we getting value for money? Are there better procurement options?
Spend analysis is the process of reviewing current and historical spending to reduce costs, increase efficiency and improve sourcing and supplier relationships. It involves identifying and gathering spending data from all sources, cleansing and classifying the data, then analyzing the information to understand how the organization is spending its money and where improvements can be made. Spend analysis enables organizations to answer crucial financial questions such as: What are we spending money on? Who are we spending money with? Are we getting value for money? Are there better procurement options?