Spend Contribution

Spend Contribution is a derived KPI, which is based on Spend Value. Controlling spend is one the primary item in focus for any organization.

Collecting the right data and tracking the Spend Value is the first step in Spend Performance Management. Subsequently, one can perform analysis on the data to find leakage, overspend etc and take appropriate actions.

Spend Contribution is simply the breakup of Total Spend Value against different dimension values. Key item to remember is the dependence of dimensions for calculating the contribution percentage. Total spend contribution will always add up to 100% across all dimension members. The example shows break down of spend across various expense categories for a specific month.

Spend Contribution can be analyzed for a fixed time context such as Month to Date (MTD) or Month over Month (MOM) as well as a trend across several time periods.

Being a financial measure, the xTD based measures typically do not apply and only whole periods are used for analysis.

A sample trend representation for Spend Contribution shows the increase and decrease of spend value across a specified dimension member.

Key item to remember here is that Spend Contribution is reported along with Spend Value across different dimensions as desired.