Difference between revisions 1300516 and 1307331 on enwiki

'''Spend management''' is the way in which companies control and optimize the money they spend to cut operating and other costs associated with doing business.

Whether it is the money spent on goods or services for direct (raw goods and materials used in the manufacture of products), indirect material (Office supplies and other expenses that do not go into a finished product) or services (temporary and contract labor, print services etc), a company needs a mechanism by which they are not only able to save money but control co(contracted; show full)t, Spend Management when considered from a holistic viewpoint can start to feed into supply management as it also affects how assets (capitol and otherwise) and inventory are procured and managed. Spend Management (and in a bigger view Total Cost Management) starts to inform a company of Total Cost of Ownership and is often used to understand the total cost of items such as assets (from their aquisition to their use and depreciation and finally to the assets retirement).

In the end, however, Spend Manag
ement is about creating longterm and sustainable savings. True Spend Management (and by extent Total Cost Management) is considered by many to be an ongoing cyclical process.