Spend Under Management refers to the portion of an organization’s total spend that is actively managed by the procurement team using defined processes, strategies, and tools.

What it Measures ?

How much company spending is handled by the procurement team.

Relevant StakeHolders 

Procurement Managers, Controllers

In-depth Use Case / Real-world Example

Let’s take a manufacturing company that produces heavy-duty industrial valves. Over the course of a year, the company spends ₹100 crores on various goods and services—including raw materials, components, packaging, logistics, maintenance, and professional services. Now, not all of this spend is actively managed by procurement. In many companies, different departments may make purchases directly without centralized oversight, leading to missed savings, inefficient supplier choices, or inconsistent contract terms. Spend Under Management (SUM) tracks how much of this total spend is actually controlled by the procurement function through structured sourcing processes, approved supplier lists, contract compliance, and use of procurement tools like ERP or analytics platforms (e.g., INSIA). For example, if procurement actively manages ₹65 crores out of the ₹100 crores spent, then the Spend Under Management is 65%. A higher SUM indicates better control, stronger supplier relationships, and more opportunities for cost savings, standardization, and risk reduction. It also ensures that spending aligns with company goals, quality standards, and compliance requirements. Increasing Spend Under Management often involves: Centralizing purchasing decisions. Enforcing procurement policies. Integrating spend data across systems. Training internal stakeholders on sourcing best practices. Ultimately, this metric reflects procurement’s strategic influence within the organization. The more spend that is under control, the greater the ability to reduce costs, improve efficiency, and drive long-term value.