2-8 Conduct Spend Analysis

Spend analysis is the process of collecting, refining, and analyzing spend data. The purpose of a spend analysis is to identify:

Spend analyses are used to support a wide range of activities, from strategic sourcing to budgeting and planning. Sufficient visibility and analysis of spending information broaden the Postal Service’s ability to:

An initial estimate of how much the client organization is spending and how much spending is planned to take place must be made before the spend analysis process can begin. This can help in the development of opportunity assessments for future projects or investments.

When spend analysis is overlooked or executed on an ad hoc basis, it can result not only in highly fragmented buying strategies that fail to fully leverage the Postal Service’s purchasing power, but also in misguided purchase decisions and missed opportunities for cost savings.