Skip to content

What is spend management?

Spend management is the tried and true practice of comprehensively managing all supplier relationships and company purchasing to identify every dollar spent and get the most out of it. Spend management best practices integrate and automate all spend-related activities from source to settle so that buying happens as planned and suppliers get paid in compliance with contracts.

By taking a big-picture view of spending, more addressable spend can be brought under management, driving more organizational value. The value is derived from:

  • Greater efficiency – from automating manual, error-prone processes
  • Lower supply costs and risks – by knowing exactly what is being bought, from whom, and for how much
  • More effective collaboration ­– between trading partners and cross-functional teams
  • Improved productivity – by freeing time and resources to focus on more strategic activities

Get more spend under management and the most out of every dollar spent by integrating and automating all spend activities from source
to pay.

Two colleagues at a cafe review a document on a laptop screen
Coworkers in a conference room discussing spend management options with SAP Ariba

Processes digitized and consolidated

Spend management begins with the digitalization of sourcing, contracting, and purchasing processes, along with processes for managing suppliers, invoices, and payments. These functions are then consolidated into one simple, intelligent process carried out on a single, cloud-based platform integrated with a digital business network. This makes it possible to gather and analyze all spend data, gaining insight into company spending across the entire organization

Turn insights into action

Using spend management software, you can turn insights into action in an interconnected, end-to-end process:

Sourcing is performed from a stronger negotiating position to receive better pricing from suppliers

Contracts are written in real time, then stored in a centralized repository to facilitate visibility and compliance

Purchasing is controlled by guiding employees to buy from preferred suppliers at negotiated prices

Supplier lifecycle and performance are managed with a 360-degree view of reliable, up-to-date data

Multitier supplier visibility mitigates supplier risk and potential threats to operations, image, and revenue

Invoice capture, workflow, and approval are automated to eliminate exceptions and ensure compliance with contracts and purchase orders

Collaborating with suppliers, payments are managed to increase free cash flow, improve working capital, and capture early-payment discounts

This is Spend Management™

SAP Ariba Spend Management Solutions

Data points illuminated
Solutions Overview

SAP Ariba offers intelligent solutions that seamlessly connect virtually every step and piece of data together across the entire source-to-pay process.

Solutions Overview
Earth at night
Ariba Network

Ariba Network is now SAP Business Network, the world's largest business network and a dynamic, digital marketplace where companies connect to get business done.

SAP Business Network
A buyer sees how easy it is to buy with SAP Ariba Snap
SAP Ariba Snap

A fast and simple way to automate procure-to-pay for midsize and growing companies. Do it in 12 weeks or less with pre-configured solutions packaged and priced to meet your needs.

Explore SAP Ariba Snap
Popular search terms: