Metric Definition
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Total spend under management
Total spend under management measures the percentage of organisational expenditure that flows through controlled procurement or spend management channels. It is the broadest indicator of how much financial visibility and control the organisation has over its outgoing cash.
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What is total spend under management?
Total spend under management captures what proportion of all money leaving the organisation passes through systems that provide visibility, controls, and data. Managed spend flows through corporate cards, purchase order systems, approved vendor invoices, or procurement platforms. Unmanaged spend includes personal card reimbursements, petty cash, manual wire transfers without PO backing, and any other payment that bypasses controlled channels.
Organisations with high spend under management (above 80%) have better data for analysis, stronger policy enforcement, more negotiation leverage with vendors, and lower fraud risk. Those with low managed spend are effectively flying blind on a significant portion of their expenditure.
How to calculate total spend under management
Spend Under Management = (Managed Spend / Total Organisational Spend) x 100
For example, if total organisational spend is 15 million pounds and 12 million flows through corporate cards, procurement systems, and controlled AP workflows, spend under management is 80%. The remaining 3 million in reimbursements, petty cash, and uncontrolled payments represents the gap to close. Measure this metric quarterly and set targets for progressive improvement.
How to increase total spend under management
Issue corporate cards to all employees who incur regular business expenses so they do not need to use personal cards. Implement virtual cards for online subscriptions and one-off vendor payments. Route all invoice payments through an AP automation system rather than processing manual payment requests. Eliminate petty cash by replacing it with small-value card transactions. Make the managed channel easier and faster than the workaround, since employees will naturally gravitate toward the path of least resistance.
Related metrics
Card Activation Rate
Financial Metrics
Metric Definition
Card Activation Rate = (Cards With At Least One Transaction / Total Cards Issued) x 100
Card activation rate measures the percentage of issued corporate cards that have been activated and used for at least one transaction. It is a leading indicator of spend management programme adoption and reveals whether employees are actually using the cards provisioned for them.
Maverick Spend Rate
Financial MetricsMetric Definition
Maverick Spend Rate = (Spend Outside Approved Channels / Total Spend) x 100
Maverick spend rate measures the percentage of total organisational spend that occurs outside approved procurement channels, preferred suppliers, or negotiated contracts. Also known as rogue spend, it represents purchases made without following established procurement processes, eroding negotiated discounts and reducing spend visibility.
Virtual Card Adoption Rate
Financial MetricsMetric Definition
Virtual Card Adoption Rate = (Transactions on Virtual Cards / Total Eligible Transactions) x 100
Virtual card adoption rate measures the percentage of eligible transactions that use virtual cards rather than physical cards, manual payments, or reimbursements. Virtual cards provide stronger controls through single-use numbers, merchant locks, and predefined spend limits, making them a preferred channel for online purchases and subscription management.
Bring all organisational spend under control
Build a metric tree that connects spend under management to cost visibility, policy compliance, and operating margin so you can quantify the value of centralised spend control.
