Spend management is the systematic governance of an organisation's total spend: capturing, analysing, controlling and continuously improving it.
Building blocks. Transparency over spend, a defined procurement process from requirement to award, contracts and master agreements, approval and ordering rules, reporting to controlling and management.
Where it sits. Spend management is governance as a whole. Spend under management measures how much of the spend volume is actually governed. Spend control describes the individual measures, spend visibility is the prerequisite. In finance and expense software the term sometimes also covers company cards and travel costs. This glossary means procurement spend.
For services. There is no catalogue and there are no item numbers, requirements are individual and arise in a decentralised way in the business units. Spend therefore often becomes visible only at invoice stage. Spend management for services has to start at the requirement, not at the invoice.