Spend analytics describes the structured analysis of spending, supplier and purchasing data with the aim of creating transparency about a company's procurement behavior. For example, data on prices, quantities, suppliers, product groups or business areas are analyzed.
The insights gained are used to identify potential savings, improve purchasing processes and provide data-based support for strategic decisions. Modern spend analytics tools use AI and external market information (e.g. commodity prices or exchange rates) to make additional levers visible. Spend analytics is a central element in strategic purchasing and often forms the basis for negotiations, bundling and supplier optimization.