Digital Spend Analysis Model Enabling Supplier Consolidation to Increase Procurement Efficiency and Strategic Sourcing Performance

Effective procurement and strategic sourcing require comprehensive spend visibility and the ability to consolidate suppliers for optimized operational performance. This study presents a digital spend analysis model designed to integrate multi-source transactional data, identify spend patterns, and enable supplier consolidation to enhance procurement efficiency. The model leverages data analytics, automated categorization, and visualization tools to generate actionable insights for strategic sourcing decisions. By implementing the framework in a multinational enterprise context, the study demonstrates reductions in supplier redundancy, improved negotiation leverage, and enhanced cost savings. Findings highlight the potential of digital spend analysis to transform procurement functions into strategic value drivers while ensuring transparency, compliance, and operational resilience across global supply networks.