What is Spend cube ?
Spend Cube is a graphic depiction of the results of the spend analysis. It has three dimensions: suppliers, corporate business units, and item categories.
Understanding Spend Cube
A specific multidimensional analysis of spending data is described by the spend cube. Typically, at least three aspects are examined:
- The subcategories or variants are purchased across the organization, together with their values
- The stakeholders or departments that purchase the category, along with their values
- The amount spent with various suppliers
Elements Of Spend Cube
Any procurement professional can use a spend cube as a powerful tool. It should not be taken for granted and should be periodically examined. Without this technology, no category manager or head of procurement can professionally approach their category or successfully resource their staff. Spend cube offers insights on the below-mentioned categories:
- The amount spent overall by the company
- The scope’s total spend value (that which procurement can influence)
- Levels of core and non-core direct spending
- The amount spent on each category
- The number of vendors per category
- The total amount spent with each supplier
- Spending on suppliers and evolving tendencies (monitored monthly, quarterly, or annually as required)
