Spend Under Management

Spend Under Management refers to the portion of an organization's total expenditure that is actively controlled and overseen by the procurement function through formal processes, contracts, and systems. This metric indicates procurement's influence and effectiveness in managing organizational spending.

Characteristics of spend under management include:

  • Sourced through formal procurement processes
  • Covered by negotiated contracts
  • Purchased from approved suppliers
  • Tracked in procurement systems
  • Subjected to compliance controls
  • Analyzed for optimization opportunities
  • Included in category management strategies

Digital procurement platforms increase spend under management by providing user-friendly requisitioning tools, simplifying access to contracted suppliers, enforcing approval workflows, and capturing detailed transaction data for analysis and reporting.

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