Demand management is a unified method of controlling and tracking business unit requirements and internal purchasing operations. It helps organizations remain engaged in their supplier relationships and related advantages. Organizations use demand management systems to address external spending factors, arrange purchase orders and eradicate waste. Demand management focuses on the volume of products that are purchased from providers, rather than individual product pricing, in contrast to conventional sourcing initiatives. Demand management is also known as consumption management or strategic spend management. Sometimes demand management is tracked in a cost savings report. It is considered an important component in helping the sourcing organization create and deliver value to the organization.