Simply put, spend category management delineates all the different areas of expenses that an organization spends money on. Being able isolate sourcing categories provides maximum benefits in spend management, especially combined with supplier and market data. Segmenting spend into categories of related products empowers Procurement to focus on finding opportunities for spend and supplier consolidation, and maximized savings. Some examples of indirect spend categories include employee insurance and benefits, logistics, MRO, marketing and advertising, utilities, professional services, and the like. Examples of direct spend categories include raw materials, engineered products (PPV & VAVE), contract manufacturing, and more. Categorizing provides better insights into all the spend information collected.