Difference between revisions 474109840 and 474505036 on enwiki

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'''Spend management''' is the way in which companies control and optimize the money they spend. It involves cutting operating and other costs associated with doing business. These costs typically show up as "operating costs" or SG&A (Selling, General and Administrative) costs, but can also be found in other areas and in other members of the supply chain.

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This is why, in hard times, companies typically turn to cost-cutting measures such as layoffs and product quality reductions. However, most analysts agree that this short-term tactic creates little long-term value, nor any long-term sustainable savings. This is why "Spend Management" has become a key long-term strategy for companies seeking to maintain long-term and sustainable value.


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== Spend management systems ==

Most recently, companies have been utilizing new tools such as e-sourcing (for bidding and [[reverse auction]]), e-procurement (to control and monitor purchasing activities and contracts), and e-spend analytics (to gain insight into how much money is being spent on what types of services or products). Some tools are also addressing the entire spending chain, or [[purchase-to-pay]] cycle <ref>''[http://www.itjungle.com/fhs/fhs041310-story04.html P2P vendors in (contracted; show full)

In the end, however, Spend Management is about creating long-term and sustainable savings. True Spend Management (and by extension Total Cost Management) is considered by many to be an ongoing cyclical process.

== See also ==
* [[reverse auction]]

==Further reading==
  
{{Citation
  | last1 = Pandit | first1 = Kirit
  | last2 = Marmanis   | first2 = H.
  | title = [[Spend Analysis: The Window into Strategic Sourcing]]
  | publisher = [[J. Ross Publishing]]
  | year = 2008
  | isbn = 1-932159-93-6 }}

==References==
<references />

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[[Category:Management accounting]]
[[Category:Procurement]]
[[Category:Supply chain management]]

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[[sk:Riadenie výdavkov]]