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Spend Analysis Pro Tip #5 – Account for Shifting Spend Trends

Collecting historical data has benefits well beyond revealing missing data. Comparing supplier data year-over-year enables your Procurement team to  observe emerging trends. For example, you might observe a drastic increase or decline in spend with a specific supplier. What might a $100,000 drop in spend over a year tell you about a specific supplier relationship? Quite a lot.

This is no random example. As companies move away from physical printed materials to digital alternatives, spend for commercial printing has plummeted year-over-year. Is it worth your company’s time to continue spending any money on a supplier who might not be around in the near future? Almost certainly not.

Taking a close, regular look at your historical spend can prove enlightening. You’ll better understand how your purchases have evolved and better maintain a fluid sourcing strategy.