Spend Analysis
The process of collecting, cleansing, classifying, and analysing procurement spend data to identify savings opportunities, improve compliance, and support strategic sourcing decisions.
Spend analysis is the foundation of strategic procurement. Without understanding what you spend, with whom, and on what, it is impossible to develop effective category strategies or identify savings.
Spend Analysis Process
- Data extraction — pull spend data from ERP, P2P, and AP systems
- Data cleansing — standardise supplier names, remove duplicates
- Classification — categorise spend using UNSPSC or custom taxonomy
- Analysis — identify patterns, outliers, and opportunities
- Reporting — dashboards and reports for stakeholders