The Procurement Glossary » Spend Management Software
Spend Management Software
Technology & Systems
Definition
Software that captures, classifies and analyses organisational spend to improve visibility and control.
Explanation
Spend management software aggregates purchasing data across systems, cleanses and categorises it, and surfaces analytics on who is buying what, from whom, at what price. It underpins savings identification, budget control and supplier consolidation.
Example
Spend management software reveals that five departments buy the same chemical from four suppliers at three different prices.
Related terms
- Spend Analysis — The process of collecting, cleaning, classifying and analysing purchasing data to understand what an organisation buys, from whom and for how much.
- Spend Cube — A multi-dimensional view of spend data allowing analysis by supplier, category and business unit simultaneously.
- Spend Visibility — The degree to which an organisation can see and understand its total spend across categories, suppliers and business units.
- Procurement Analytics — The analysis of procurement data to generate insight into spend, performance, savings and risk.
Related concepts
- Spend Analytics — Turning raw procurement transaction data into a clear, categorised picture of what an organisation buys, from whom, and where the savings are.
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Frequently Asked Questions
What is Spend Management Software?
Software that captures, classifies and analyses organisational spend to improve visibility and control. Spend management software aggregates purchasing data across systems, cleanses and categorises it, and surfaces analytics on who is buying what, from whom, at what price. It underpins savings identification, budget control and supplier consolidation.
Can you give an example of Spend Management Software?
Spend management software reveals that five departments buy the same chemical from four suppliers at three different prices.
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