Spend Cube

What is Spend Cube?

Spend Cube refers to 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. The three main aspects that are examined are:

• The subcategories or variants that are purchased across the organization, along 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

Spend Cube serves as a powerful tool for a procurement professional. It should not be taken for granted and should be periodically examined. Without this technology, it is difficult for a category manager or head of procurement to professionally approach their category or successfully resource their staff.

Spend Cube offers insights on the following categories:

• The overall amount spent 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 suppliers per category
• The total amount spent with each supplier
• Spending on suppliers and evolving tendencies (monitored monthly, quarterly, or annually as required)