Spend analysis is the starting point of strategic sourcing and creates the foundation for spend visibility, compliance, and control. Spend analysis organizes procurement information via supplier hierarchies, commodity alignment, and spend amount, in order to:

• Ascertain true category spend
• Identify strategic sourcing opportunities through demand aggregation and supplier rationalization
• Identify expense reduction through increased compliance in the form of vendor rebates, maverick spend, contract compliance, and budget variance

In the confusing world of supply chain technology, solution selection will be easier if you enter into the decision-making process armed with some key factors to consider. The importance of learning about the functional differences between ERP - data warehouse systems and best-of-breed spend analysis is clear. This paper will examine the capabilities between each type of solution to help determine which one is the best fit for your business.