What Is Spend Cube Analysis and What Is It Made Up Of?
When managing procurement for a business, one of the first questions that comes to mind is where exactly the money is going. Hundreds of suppliers, categories, and departments are involved, and it may be a challenging task to find the answer. This is where Spend Cube Analysis can make things easier. What Is a Spend Cube? When you are wondering what a spend cube is, it is merely a methodical way of viewing procurement spending in different ways. One of the methods to bring together the disjointed purchasing data is a Spend Cube that can assist businesses in understanding their spending better. A Procurement Spend Cube allows procurement teams to see patterns and opportunities instead of examining thousands of transactions one at a time. What a Spend Cube is Comprised of. Typically, the cube is constructed on three significant dimensions: Suppliers: Who is receiving the money? Categories: What is being purchased in terms of products or services? Business units: What department or locati...