AI and Spend Analysis tools: 9 tools analyses in new report

Promoting this adherence to contract terms ultimately helps optimize your procurement efforts and control costs, and solid contract management software is a tool that will help you get there. Namely, their purpose is to help you strategically select the best suppliers and, this way, optimize costs and improve procurement performance. But there are other solutions out there that can take your spend analysis efforts to the next level, like supplier discovery platforms. For instance, your spend management software might reveal that your organization is overspending on shipping because various locations are purchasing the same goods from different suppliers. For starters, it might just be the fact that tools like ERP—while helpful to the process of spend analysis—have a broader functionality and, therefore, provide less comprehensive spend-related insights.

Spend Analytics Visualization Tools

High-performing teams use spend analysis as a springboard for creating broader value. It helps identify contract leakage and improve supplier performance, and insights can be used to support ESG initiatives and enable more strategic sourcing. Despite investments in tools and data, most procurement teams struggle to scale their efforts beyond one-off reports or limited categories.

• The table below summarizes key capabilities and why they matter, along with what to look for when evaluating spend analysis solutions.
• Spend analysis delivers transparency efficiency, supports predefined categories of items, prioritizes resources, and identifies savings opportunities.
• The specific KPIs an organization chooses to focus on will vary depending on its needs and company goals.
• With better management of your preferred supplier program, teams can reduce rogue spend and identify opportunities to drive savings and value.
• Finding the right tool is always a balancing act between features, requirements and budget.

Spendkey

Businesses operating in regulated industries like banking and healthcare benefit the most from an ongoing spend analysis service. Those with IT policies that prohibit external procurement software also benefit. These companies often require specialized expertise to track compliance, supplier risk, and cost optimization opportunities while adhering to strict internal and external policies. Sales Forecasting Gain insights into spending patterns and optimize expenses with advanced spend analytics software. The platform’s analytics help you track risk exposure across your supply chain, spot potential issues early and make more confident procurement decisions. It’s a handy tool for strengthening supplier relationships whilst protecting your business from financial surprises.

Use PLANERGY to manage purchasing and accounts payable

Both direct and indirect procurement spend can be grouped into categories, enabling analysis and management of similar goods or services. Data enrichment refers to the process of enhancing, refining, and improving raw spend data. Enriching the spend data makes sure that all the header and line-level names and details are accurate and to a specific naming standard. The final step is the analysis itself, where the cleansed and classified data is examined to uncover spending patterns, inefficiencies, and opportunities for cost reduction. Collection, the data undergoes cleansing to remove errors and inconsistencies, ensuring accuracy. The next phase, data classification, organizes spending into normal balance categories, making analyzing and identifying trends easier.

Spend analysis services

Manage the supply chain risk by evaluating where you use single-source materials or where all vendors are from the same region of the world. For example, many companies needed to spot buy personal protective equipment (PPE) from sources located outside of China when the Chinese manufacturing plants were suddenly closed. Standard taxonomies are available, including UNSPSC (United Nations Standard Products and Services Code) and eClass. Simfoni has created standard taxonomies for several industries based on working with clients for over ten years and provides them as an option to new customers. Each company must decide if the taxonomy matches its business and is complete enough to provide useful analytics.

• Get detailed insights into your spend data and make informed, strategic decisions using advanced GEP SMART spend analytics tools.
• By focusing on these KPIs, organizations can effectively monitor and manage their spend.
• By providing insight into the terms and conditions of all supplier contracts, contract management software helps you ensure that all the purchases your organization makes are indeed aligned with them.
• If sourcing managers ignore the reports, or finance and legal question the numbers, the initiative stalls.
• Spend analysis software helps organizations track, analyze, and optimize their spending patterns by consolidating financial data from multiple sources.
• Our 2025 report breaks down $20B in spend data to reveal where top-performing procurement teams are getting it right—and where others fall short.
• This process typically involves tasks similar to what a data analyst does, including collecting and cleaning data from various sources.

Spend analysis software helps organizations track, analyze, and optimize their spending patterns by consolidating financial data from multiple sources. It provides visibility into spending habits, supplier relationships, and cost-saving opportunities, enabling data-driven decision-making. Key features often include data visualization automated spend analysis tools, customizable reports, and automated classification of expenses for easier analysis.

Modules within ERP or procurement suites

Spend analysis is a critical component of strategic sourcing and vendor selection. It enables businesses to make data-driven decisions that optimize their supplier base, improve procurement outcomes, and strengthen their position in the marketplace. Through careful analysis and strategic partnerships, companies can achieve a significant advantage in their operations and overall performance. Real-time data supports agile decision-making, allowing businesses to adjust strategies swiftly in response to market changes or internal dynamics. By offering a clear, up-to-the-minute view of financial transactions and spending patterns, dashboards enable more strategic planning and informed decision-making. Get detailed insights into your spend data and make informed, strategic decisions using advanced GEP SMART spend analytics tools.