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Glossary: Spend Analysis & Spend Management

Spend Analysis – The activity of collecting corporate spend data from various data systems, including ERP, accounts payable, invoices, etc., to provide an understanding of what a company spends on materials and services, with whom, and for what. This is often accomplished through a combination of technology and professional services to normalize and classify data for reporting. (See also "Spend Visibility")

Spend Reporting – A formal documentation and sharing of spend activities, which may include historic, current, and forecasted spend activities.

Spend Under Management – Corporate spend (excluding payroll and taxes) that is managed by a formal sourcing/procurement process. Often used to describe the level of spend that a company is managing through a sourcing or procurement technology solution. [Refer to: Spend Under Management with CombineNet.]

Spend Visibility – In sourcing and procurement terms, a reporting function that provides visibility into what a company spends on direct and indirect materials and services, including how much, with whom, and for what. Spend Visibility is often used interchangeably with Spend Analysis, though it is often Spend Analysis that delivers the data in a format with which to provide Spend Visibility. (See also "Spend Analysis")

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