To reduce costs in a procurement process, stakeholders can start with a spend analysis. It helps collect and categorize historical spend data to identify spending trends and patterns. The extracted data is then cleansed and normalized either through manual effort or using procurement tools.

The data cleansing and normalization will help uncover hidden expenses like dark purchasing and inherent inefficiencies in the supply chain. Both direct and indirect purchasing can offer opportunities for cost savings by identifying opportunities to negotiate volume discounts, consolidate purchases, or switch strategies based on data-backed insights.

Recommended Reading:
How procurement tools improve efficiency?
What is procurement process?
What is vendor management system?
What is PO system?
Best eprocurement software in the market 2025
How to choose the best procurement software for small business?
Best vendor management tools in 2025
Procurement solutions guide
Differences between sourcing and procurement
What is the difference between procurement and purchasing?
Best strategic sourcing software tools in 2025