Spend analysis is the process of identifying a spend pattern in the companies spend data.
Spend data can be in form of a databse table or an excel spread sheet containing fields which contain vendor information, corporate information, purchase invoice details, purchase order details and other fields which so ever may be required by the company.
Broadly the financial statement gives an account of revenue, cost & holdings.
Spendanalysis goes deeper in to the cost to the company. Seeking answers to questions such as-
What is being purchased ?
From whom is it being purchased ?
why is it being purchased?
how is being purchased ?
who is purchasing it?
where is it being purchased from?
There are many such questions which can come in mind of a purchasing manager. Spendanalysis is caried out to answer all such questions, which aid in effective price negotiations and ultimately saving a great deal of money.
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