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Procurement · Definition

Spend Analysis

Classifying and examining purchase data to find savings and risk.

Spend analysis consolidates purchasing data and classifies it by category, supplier, department and contract status. It answers the questions most organisations cannot answer offhand: what do we buy, from whom, and how much of it is under contract.

The usual findings are consistent — the same item bought at several prices, spend fragmented across many suppliers in one category, and a long tail of unmanaged purchases. Each is a concrete savings project.

Also called

  • spend cube
  • procurement analytics

See it in AWRA OpsHub

Procurement Analytics Suite

Spend Analysis is not just a definition here

Procurement runs on this vocabulary every day in AWRA OpsHub — 40 of our 257 glossary terms describe things the platform actually does.