What is meant by Spend AnalysisSpend Analysis is often synonymously used with the term Spend Management. Both terms fundamentally encompass all functions required for progressive purchase controlling.
Other interpretations of Spend Analysis emphasize “analysis,” which refers to analyses of procurement KPIs. Spend stands for procurement volumes. Modern spend analysis systems such as the SpendControl software from Orpheus, however, contain many more key figures concerning procurement. Therefore, in addition to spend analyses, key figures and reports regarding compliance (e.g. Maverick Buying Quote), material prices or material price changes, payment terms and conditions, supplier performance and product group management, cost savings and purchasing successes, quality and supplier reliability, benchmarks and many other KPIs is available in this software.
An important feature of progressive spend analysis software is that it can analyze both the spend of the direct product group as well as that of the indirect procurement categories. Especially for indirect purchasing, which refers to materials and categories that do not become part of the end products (e.g. marketing, consultation services or IT), highly selective analyses for procurement performance management are still rare.
Innovative software for the so-called content management or data management (as part of a Spend Analysis software) also helps to generate meaningful reports in indirect purchasing which, in turn, serves as a basis for getting a better grip on the indirect spend and to manage it more cost efficiently.
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