Potential Spend
Potential spend is the total amount an organization would spend with a manufacturer, supplier, or component source if it directed all applicable component purchases to that source. It helps sourcing teams understand opportunities to consolidate purchasing, quantify additional business they could offer, and strengthen negotiation leverage.
Explore related sourcing concepts
See the Lytica glossary for related definitions, or browse the knowledge base for practical guidance on component pricing, savings, and supply risk.