A supply management department is looking to standardize purchases across the entire organization and leverage...

Conduct Spend Analysis: Spend analysis involves the collection, cleansing, classification, and analysis of expenditure data to understand spending patterns.

Identify Historical Costs: By analyzing past spending data, the supply management department can identify historical baseline costs for various categories.

Leverage Data: This data can then be used to negotiate better terms with suppliers, streamline purchasing processes, and reduce costs.

Standardization: Spend analysis helps in identifying opportunities for standardizing purchases, thus leveraging spend with fewer suppliers and achieving economies of scale.

References:

CIPS: "Spend Analysis and Cost Reduction"

ISM: "Spend Analysis: The Key to Strategic Sourcing"