IndexIntroductionDependence on ShepherdsConclusionIntroductionExpenditure is the heart of the economy, performed by anyone called an individual or a large company. Regardless of the importance of the spend, spend analysis is sometimes overlooked because people/companies ignore its importance, being confident that all their spending was valuable or inevitable and in the right direction. However, spending without analysis cannot remain healthy for long, especially for a company that needs to compete or lead a market. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Primarily by performing spend analysis, we have visibility into our overall spend and the categories that define it. This means we can answer the question of whether we are actually spending the right (planned) amount on the right categories. We can also understand which categories are profitable and which are not, so we can manage them. The company's actual spending can lead us to better conclusions and decisions about future goals. For example, we have the ability to change our spending or overall approach to a certain category if the profit margin has been low since the problem was recognized. The risk of a further collapse is managed and savings can be made. Additionally, we can eliminate supplier overpayments. Data on suppliers, categories, profits and expenses becomes very accurate and complete, while absorbing the data for other uses does not require the involvement of heavy IT work. Over time, you get more detailed and simpler analyses. The data is interpreted in such a way as to send messages to all interested parties. We can then classify and prioritize all the great savings opportunities very quickly. One case where data would be very useful is when negotiating with the company's suppliers to get the best deal possible. “There is so much to negotiate because spend analytics gives you great insight into your spending data and can help you identify opportunities you didn't know existed.” Additionally, out-of-contract expenses become apparent and actions can be taken to reduce such as new contracts or new suppliers, so risks are mitigated and savings are realized from risks that become real problems. From all the above conclusions a new strategy can emerge, tailored for success, tailored to leverage the company's business spend. Data derived from spend analysis, such as the number of suppliers, categories and the number of products supplied by each supplier, provides a detailed view of the supply chain and answers the following: Dependence on pastors Overspending with a supplier can create risk of running out of goods or services if the supplier goes bankrupt or fails to deliver. Through spend analysis, we can check whether we actually have the desired number of suppliers, which means that monopolies and exaggerated costs are avoided and that they do not exclusively source at the same critical level. Failure at a critical level can easily create a disastrous domino effect. More suppliers create competition and risk is mitigated, for example if weather conditions or lack of raw materials at a location/supplier interrupts delivery. Stock outs are eliminated if possible. By recognizing the above risks and controlling them, we have reduced costs (savings) while ensuring supply does not fail, either through increasing inventories or engaging other suppliers locally or internationally. We know exactly.