Spend Analytics is key function in procurement as it involves collecting, cleansing, normalizing, and analyzing spend data to support improved decision making across the business. It provides the organization with detailed visibility into its purchases, spending patterns, and supplier performance, and uncovers potential cost savings opportunities.
Spend analytics relies heavily on digital tools and platforms, increasingly driven by AI and automation, for reliable and efficient data management that procurement can use to generate actionable, data-derived insights for the business.
By leveraging spend analytics, procurement can do things like negotiate better contracts, make more informed strategic decisions and recommendations, drive more cost savings, improve forecasting, and strengthen their supplier relationships through data.
