Measures the percentage of total procurement spend that is managed through formal contracts with suppliers.

What it Measures ?

Tracks how much is spent under signed contracts.

Relevant StakeHolders 

Legal Teams, Compliance, Procurement

In-depth Use Case / Real-world Example

A manufacturing company producing steel components calculates Spend Managed Under Contracts to track how much of its procurement is governed by formal supplier contracts. If the company spends ₹100 crore annually, and ₹80 crore is covered by formal contracts, the percentage of spend under contract is 80%. This helps ensure that the company benefits from negotiated terms and reduces the risk of maverick spend.