Spend Analysis


The concept explores the importance of procurement visibility and explains how organisations can determine spend by commodities, products, services and suppliers. You will gain an understanding of how to better leverage your buying power, reduce costs and strategically improve supplier relationships.

Technique Overview

Spend Analysis Definition

Spend analysis is the process that “integrates internal spend data and external supplier and market data and applies analytical and benchmarking techniques to help identify risks and opportunities for performance improvements and savings by applying best practices in purchasing and supply management” (RAND, 2004).

Spend Analysis Description *

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Business Evidence

Spend Analysis Strengths *

Spend Analysis Weaknesses *

Examples of Spend Analysis *

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Business Application

Spend Analysis Implementation *

Success Factors of Spend Analysis *

Measures of Spend Analysis *

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Professional Tools

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Further Reading

Spend Analysis Web Resources *

Spend Analysis Print Resources *

Spend Analysis References (4 of up to 20) *

  • Bartolini, A. and Dwyer, C. (2008) Spend Analysis: Pulling Back the Cover on Savings. Aberdeen Group, October, 2008.
  • CIPS: How Do We Measure Up?
  • CIPS/Portland Group (2009) Strategic procurement survey.
  • Department for Environment, Food and Rural Affairs (2006) Procuring the Future. Sustainable Procurement National Action Plan: Recommendations from the Sustainable Procurement Task Force. London.

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