Spend Analysis
Spend analysis is the process of collecting and categorizing organizational expenditure in order to identify patterns and optimize spending. Typically, spend analysis is performed on financial data, but it can also be applied to other types of data, such as inventory or invoices.
There are several different methods that can be used to perform spend analysis, including manual review, statistical analysis, and data mining. The most effective approach depends on the organization’s needs and resources.
Organizations use spend analysis to improve their procurement processes in several ways. For example, spend analysis can be used to identify opportunities for cost savings, negotiate better terms with suppliers, or streamline procure-to-pay processes. Additionally, spend analysis can help organizations keep track of their compliance with internal policies and external regulations.