What is the process of reviewing total spend across multiple areas to negotiate better deals called?

Prepare for the CIPS Supplier Relationships (L4M6) Test with engaging questions. Deep dive into supplier management through multiple-choice questions and detailed explanations. Boost your knowledge and confidence before the exam!

The process of reviewing total spend across multiple areas to negotiate better deals is accurately referred to as spend analysis. This method involves assessing an organization's expenditure across different categories to identify opportunities for cost savings, improve supplier relationships, and drive better procurement strategies. By analyzing spending patterns, organizations can gain insights into where their money is going, which supplies are most frequently purchased, and how they could consolidate purchases to leverage better pricing or contractual terms with suppliers.

In contrast, pooling resources generally refers to combining resources from different areas or departments but does not specifically address the scrutiny of spending. Leverage refers to the strategic advantages gained from negotiating power, which can arise from spend analysis but is not the process itself. Market expansion involves entering new markets or increasing market share, distinct from the analysis of spending across current suppliers. Thus, spend analysis is the most relevant term for the process described in the question.

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