Spend management tools analysis in purchasing: a literature-review based approach

Abstract

In a growing competitive and cost-reduction environment in a business globally, a spend management system has become crucial for companies aiming for innovation and sustainability in enhancing their purchasing performance and opportunities for cost savings. In this context, the objective of this literature review was to: Looking up the existing studies about the topic of spend management tools analysis in purchasing; Analysing the different spend management tools used in purchasing; Gather up the effective spending management tools that can be used in purchasing; and A theoretical framework or direction for future research. A comprehensive literature review was conducted throughout the entire study, as the research's methodology relied on a literature review. A systematic literature review approach and meta-synthesis was employed to assess and analyse the findings of the study. The result of the study contained the concept of spend management practices in purchasing, best spend management tools used in purchasing, operational & financial benefits and challenges of spend management tools, analysing and procedure of selecting the best spend management tool, and digitalization impact on whole procurement and role in purchasing. The process and strategy of selecting spend management tools been investigated in this research. While the implementation of spend management tools can enhance company sustainability and better overview the whole spending and operation, the process of establishing these practices poses significant challenges for management. Furthermore, the study emphasizes the spend management tool’s role in improving the pro-cess through decision-making and enhancing transparency and highlighted how Artificial intelligence will be more critical in determining the future of spend management. Future research could augment the study to explore AI's impact on tool utilization in purchasing. Additionally, trends encompass cloud-based solutions, CO2e tracking and reporting, and the emergence of integrated spending ecosystems could be investigated.