What is unaddressed spending value in SAP SRM-CM - SRM Category Management?

SAP Term: unaddressed spending value

• Component: SRM-CM

• Component Name: SRM Category Management

• Description: The difference between addressable spending value and addressed spending value. The unaddressed spending value is relevant for programs and categories.

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• Key Concepts: 
  Unaddressed spending value is a term used in SAP SRM-CM Category Management. It is the total amount of money that is not being spent on goods and services that are available in the market. This includes both the money that is not being spent on existing suppliers and the money that is not being spent on potential new suppliers. 
  
  How to use it: 
  Unaddressed spending value can be used to identify areas where an organization can save money by finding new suppliers or negotiating better deals with existing suppliers. It can also be used to identify areas where an organization can increase its spending by finding new suppliers or negotiating better deals with existing suppliers. 
  
  Tips & Tricks: 
  When using unaddressed spending value, it is important to consider the total cost of ownership when evaluating potential new suppliers. This includes not only the cost of the goods and services, but also any additional costs associated with working with a new supplier, such as training and onboarding costs. 
  
  Related Information: 
  Unaddressed spending value is closely related to total cost of ownership (TCO). TCO is a measure of the total cost of acquiring, owning, and disposing of a product or service over its entire life cycle. TCO includes both direct and indirect costs associated with a product or service, such as acquisition costs, maintenance costs, and disposal costs.