What Is a Spend Cube ?- Definition

Spend Cube is three dimensions of spend data—Suppliers, Corporate Business Units, and Item Categories—the spend cube is a graphic representation of spend analysis output.

Understanding Spend Cube

The spend cube describes a particular multidimensional review of spend data. At least three dimensions are usually reviewed: which sub-categories or variants that are purchased across the organisation, and in what values; which stakeholders or departments buy the category, and in what values; and what the spend is with different suppliers, and in what values.

Elements Of Spend Cube

The spend cube is a powerful tool for any procurement professional. It should not be underestimated and should be reviewed regularly. Without this tool any category manager is unable to approach their category in a professional manner and any head of procurement will be unable to effectively resource their team.

A spend cube (with full categorisation) has provided clarity on the following:

  • The total spend value for the business
  • The total spend value in scope (that which procurement can influence)
  • Direct/core and indirect/non-core spend levels
  • The spend value per category
  • The number of suppliers per category
  • The spend value with each supplier
  • Supplier spend and changing trends (monitored monthly, quarterly or annually as required)

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