Spend Management is the process of identifying, analyzing and managing an organization’s Operational- (OPEX) and Capital (CAPEX) expenditures on goods and services. A prerequisite for successful spend Management is the implementation of Master Data Management (MDM), a single information architecture and classification system for the entire organization.
Most corporate organizations have implemented some form of Spend Management. Much of today’s eProcurement, ERP-, Finance- and Business Intelligence (BI) technology already comes with standard features to manage spend. Without solid Master Data management it is virtually impossible to get a complete and clear view of spend without the use of special tools.
A number of vendors offer specialised Spend Analyses services. Their services are designed to gather data from different sources before cleaning, structuring- and analyzing it. Although most vendors use artificial intelligence it often requires considerable amounts of manual work to produce meaningful results.