Table of ContentsIntroductionDependence on ShepherdsConclusionIntroductionExpenses are the heart of the economy, carried out by anyone called an individual or by a large business. No matter how important the expenses, sometimes expense analysis is neglected because individuals/companies ignore its importance, being convinced that all their expenses were useful or unavoidable and are going in the right direction. However, spending without analysis cannot stay healthy for long, especially for a business that needs to compete or dominate a market. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Primarily by performing spend analyses, we have visibility into our overall spend and the categories that define it. This means we can answer the question of whether we are actually spending the right (planned) amount in the right categories. We can also understand which categories are profitable and which are not so that we can manage them. Actual company expenses can lead us to better conclusions and decisions regarding future goals. For example, we have the option to change our spending or overall spending closer to a certain category if the profit margin is low once the problem is recognized. The additional fall risk is managed and savings can be made. Additionally, we can eliminate supplier overpayments. Data on suppliers, categories, profits and expenses becomes very accurate and complete, while absorbing data for other uses does not require heavy IT work. A more detailed and easier analysis is obtained over time. The data is interpreted in a way that sends messages to all interested parties. We can then categorize and prioritize all the major savings opportunities very quickly. One instance where the data would be very useful is when negotiating with the company's suppliers for the best possible deal. “You can have a lot of negotiations because spend analysis gives you great insight into your spending data and can help you identify opportunities you didn't know existed. » Additionally, out-of-contract expenses become apparent and steps to reduce can be taken, such as new contracts or new suppliers, thereby mitigating risks and saving money as these risks become real issues . A new strategy can emerge from all the above findings, tailored for success, tailored to leverage the company's business spending. Data derived from spend analysis, such as number of suppliers, categories and number of products supplied by each supplier, provides a detailed view of the supply chain and answers the following questions: Dependence on Spending too much with a single supplier can create the risk of being left without goods or services if the supplier goes bankrupt or fails to deliver. Through spend analysis we can determine whether we actually have the desired number of suppliers, which means that monopoly and exaggerated costs are avoided and it is not a single supplier at the same level critical. A critical level failure can easily create a disastrous domino effect. More suppliers create competition and risks are mitigated, for example if weather conditions or lack of materials.