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Spend Under Managementnoun · abbr.

The share of total spend actively controlled by procurement.

Spend under management is the proportion of purchasing that flows through sourced contracts, approved suppliers and proper process. The remainder is spent without procurement influence.

It is the headline measure of procurement maturity, because savings can only be delivered on spend you actually control. Raising it is usually worth more than squeezing another percent from spend you already manage.

How it is calculated

SUM % = Managed spend ÷ Total addressable spend

Managed means under contract, competitively sourced or via an approved catalogue.

Related terms

Spend Analysis

Classifying and examining purchase data to find savings and risk.

Maverick Spend

Purchasing made outside approved processes or contracts.

Tail Spend

The many small purchases that make up a small share of value but most transactions.

Approved Vendor List

AVL

The controlled set of suppliers cleared to receive orders.

More in Procurement

Approval Workflow Bid Evaluation Blanket Purchase Order Category Management Conflict of Interest (CoI) Contract Lifecycle Management (CLM) Cost Avoidance Delegation of Authority (DoA)

Spend Under Management 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.

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