Why do you need spend analysis and how it is used in procurement?

The activity of monitoring and analyzing the organizational spend is called Spend Analysis. The process of spend analysis gives deeper insights into spend patterns in the company and helps in reducing costs, boosting efficiency and managing supplier relationships by increasing visibility and transparency. Using real-time data and analytics procurement teams can dig into spend patterns and gain insights needed to reduce maverick spends, identify savings opportunities and mitigate risks. Spend analysis also enables procurement to consolidate suppliers and spend more with the better ones, benchmark performances, improve contract compliance, develop a better approach to supplier management and make better sourcing decisions with a clear view of how much you are spending, on what you are spending and with whom you are spending.