Which of the following refers to the process of generating information about the types of items sourced and their cumulative dollar value, to use for strategic and operational purchase planning?
Spend analysis is the process of collecting, cleansing, classifying, and analyzing expenditure data with the purpose of reducing procurement costs, improving efficiency, and monitoring compliance. It generates information about the types of items sourced and their cumulative dollar value, providing insights that can be used for strategic and operational purchase planning.
References
Spend Analysis: The Window into Strategic Sourcing by Kirit Pandit and Haralambos Marmanis
"Spend Analysis: A Critical Element of Strategic Sourcing" - Aberdeen Group
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