The Procurement Glossary » Spend Cube

Spend Cube

Spend & Analytics

Definition

A multi-dimensional view of spend data allowing analysis by supplier, category and business unit simultaneously.

Explanation

The spend cube is the analytical output of spend analysis: slice by any dimension to answer questions like 'how much does each site spend with each supplier by category'. It is the workbench for finding savings.

Example

Slicing the spend cube by category and site exposes duplicated stationery contracts across three offices.

Related terms

• Spend Analysis — The process of collecting, cleaning, classifying and analysing purchasing data to understand what an organisation buys, from whom and for how much.
• Spend Classification — The categorisation of each transaction into a consistent taxonomy so spend can be analysed by category.
• Spend Visibility — The degree to which an organisation can see and understand its total spend across categories, suppliers and business units.
• Category Management — Managing related groups of spend as strategic business units, each with a tailored strategy and dedicated ownership.

Frequently Asked Questions

What is Spend Cube?

A multi-dimensional view of spend data allowing analysis by supplier, category and business unit simultaneously. The spend cube is the analytical output of spend analysis: slice by any dimension to answer questions like 'how much does each site spend with each supplier by category'. It is the workbench for finding savings.

Can you give an example of Spend Cube?

Slicing the spend cube by category and site exposes duplicated stationery contracts across three offices.

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