Capterra Glossary
Spend Management
Spend management involves several practices that aim to ensure that procurement and sourcing decisions are in line with other business needs and goals. The overall goal of spend management is to account for every cent that has been spent and then use this information to make sure that the company is being as efficient as possible with its spending and its partnerships. In turn, this intense analysis aims to optimize relationships with suppliers while allowing businesses to remain in control of their finances and maximize their ROI, or return on investment.
What Small and Midsize Businesses Need to Know About Spend Management
The cost of supplies and other expenses plays a large role in the success of an SMB. By using spend management in the procurement process, SMBs can ensure that they are maximizing their resources and working with the best suppliers for their specific needs.
Related Terms
- Enterprise Resource Planning (ERP)
- Procurement
- Total Cost of Ownership (TCO)
- Vendor
- Supply Chain Planning (SCP)
- Telematics
- Senpai
- Vendor Management
- Value-Added Reseller (VAR)
- Bill of Materials (BOM)
- Supply Chain
- Smart Factory
- Scanner
- SCADA (Supervisory Control and Data Acquisition)
- Radio-frequency Identification (RFID)