Everything You Need To Know About Types of Spend Analysis
Direct Spend Analysis
It involves analyzing the cost of goods and services that are directly related to the production of goods or services.
Indirect Spend Analysis
involves analyzing the cost of goods and services that are not directly related to the production of goods or services, such as office supplies, IT equipment, and travel expenses.
Tail Spend Analysis
It involves analyzing low-dollar transactions that are typically ignored, such as one-time purchases or purchases from non-preferred suppliers.
Contract Spend Analysis
It involves analyzing spending against contractual agreements to ensure that suppliers are meeting their obligations and that pricing is consistent with the contract.
Category Spend Analysis
It involves analyzing spending within specific categories, such as marketing, IT, or transportation.
Savings Opportunity Analysis
It involves analyzing spending to identify opportunities for cost savings, such as negotiating better prices with suppliers or consolidating purchasing.
It involves predicting future spending based on historical spending patterns and market trends.