Spend analysis, explained.
From messy data to decisions you own.
Spend analysis is the practice of collecting, cleaning, classifying and analyzing supplier spend, so procurement and finance can see what is bought, from whom, at what price, and where there may be room to save.
How It Works
Four steps, every time.
Most of the effort sits in normalizing and classifying. Most of the value shows up once the data is trusted enough to act on.
Step 1: Collect
Bring spend in from every source: ERPs, AP systems, card programs and spreadsheets.
IntegrationsStep 2: Normalize
Group supplier aliases into one vendor and line up items, so totals mean something.
What is vendor normalization?Step 3: Classify
Map every line into your own taxonomy, so you see spend by market, not by GL code.
What is spend classification?Step 4: Analyze and act
See spend by supplier, category, entity and time, then work each opportunity to a decision.
CaddiesGlossary
The terms that matter.
Each entry opens with a plain definition, then covers why it matters and how to act on it.
Spend analytics
The ongoing capability to see what you buy, from whom and at what price.
Spend classification
Mapping every transaction to a category in a taxonomy.
Vendor normalization
Grouping the many names of one supplier into a single identity.
Spend cube
Spend organized by supplier, category and business unit at once.
Tail spend
The long tail of small, fragmented purchases across many suppliers.
Price variance
Paying different prices for the same or equivalent item.
Off-contract spend
Spend that happens outside the agreements you negotiated.
Supplier consolidation
Buying a category from fewer suppliers for better terms.
Supplier rationalization
Reviewing the whole supplier base to keep the right ones.
From Analysis to Action
Where analysis usually stops, and what comes next.
A dashboard ends at the chart. These are the moments where spend analysis turns into a decision.
Renewal Prep
Every agreement by notice deadline, with the evidence to act.
Price Increase Response
Your own history, not the supplier's story.
Duplicate Invoice Recovery
Totals from actual invoices, not estimates.
Tail Spend Cleanup
Many suppliers, small amounts, real money.
Choosing a Tool
Weighing your options?
Software, consultants or BI?
Four ways to analyze spend, side by side.
How to choose spend analysis software
What to evaluate, what to ask and how to prove it.
SpendCraft spend analysis software
How SpendCraft structures spend once and works it every day.
In SpendCraft
The Savings OS, piece by piece.
Classification and Normalization
Spend structured once, in your own taxonomy.
Ask Crafter
Ask your spend anything, in plain English.
Scans and Scouts
Surface opportunities on demand. Watch the data between runs.
Caddie
Work one hard problem to a decision you own.
Spaces
Keep the work and track it over time.
How the AI works
Deterministic code produces every number.
Questions
Common questions.
Is spend analysis the same as spend analytics?
Almost. The terms are used interchangeably. When people separate them, spend analysis is usually a project and spend analytics is the ongoing capability.
What data does spend analysis need?
Supplier invoices and purchases, from your ERP, AP system or files. Invoice documents help: SpendCraft's Invoice Augmentation reads invoice PDFs and scans to recover line detail ERPs drop.
Do we need consultants to classify our spend?
No. SpendCraft curates a concise representative set, your team reviews it, and proprietary AI plus rules classifies the full dataset into your taxonomy. You can reclassify on demand.
How are savings opportunities shown?
As Min to Max ranges scoped to Processed Spend, the annual supplier spend you bring into SpendCraft. Ranges are directional, not guaranteed.
See it on your own data.
A Proof of Value works one category or one moment end to end.