Spend analysis is the process of analyzing an organization's spending on procurement to identify opportunities to reduce costs and strengthen supplier relationships. It involves collecting spending data from various sources, cleaning the data, categorizing it, and analyzing patterns. The key steps in spend analysis are identifying data sources, extracting the data, cleaning it, grouping similar suppliers, classifying spending into categories like marketing or supplies, and analyzing the data to find savings opportunities such as negotiating better contracts. Spend analysis provides benefits like increased spending visibility, identification of incremental savings, improved procurement processes, reduced maverick spending, better supplier management, and more strategic sourcing decisions.