Spend Under Management Definition
Spend under management (SUM) is a term used to describe the portion of an organization’s total spend that is being actively managed through a procurement process. This includes all spend related to goods and services procured through contracts, as well as any other spending that is subject to the organization’s internal controls and approval processes.
The SUM definition can vary depending on the specific needs of an organization, but it typically includes all direct and indirect spend, as well as any other spending that falls under the organization’s control. For many organizations, SUM also encompasses travel and entertainment expenses, as well as capital expenditures.
Organizations use SUM to measure and track their procurement performance over time. By understanding how much of their total spend is being actively managed, organizations can identify areas where they may be able to improve their procurement processes or realize cost savings.
