spend analysis

Sample Spend Analysis

COLLABORATION EXPERIENCE OBJECTIVITY CREATIVITY PRECISION

Executive Summary

2

Source One analyzed the spend report provided by Client X for categories

totaling approximately $39.0 million across 10 categories.

The estimated savings opportunity is $2.0 Million across all categories and

suppliers.

Details of the spend analysis and opportunity assessments are provided

in this presentation.

www.sourceoneinc.com

Total Spend: $39.0M

3 www.sourceoneinc.com

Professional Services - Consulting

4

Supplier Name Annual Spend Potential Savings %

Potential Savings Amount

Supplier A $4,758,333 3% $ 142,750

Supplier B $2,533,311 5% $ 126,666

Supplier C $542,889 5% $ 27,144

Supplier D $488,527 7% $ 34,197

Supplier E $418,494 5% $ 20,925

Supplier F $361,636 5% $ 18,082

Supplier G $339,225 7% $ 23,746

Supplier H $333,064 5% $ 16,653

Top Suppliers Total Annual Spend:

$13.4 Million

Potential Savings Opportunity: 4%, $563K*

Opportunity for Savings: MEDIUM

Primary Savings Levers: Sourcing & Negotiation Service Rationalization/

Scope Review Consolidation of like

services

* The majority of this spend is for a specific scope of work potential savings opportunities exist in modifying the rate card(s) for future endeavors.


IT Services - Maintenance

5



Supplier A $5,437,976 7% $ 380,658

Supplier B $898,990 5% $ 44,950

Supplier C $247,485 7% $ 17,324

Supplier D $155,814 10% $ 15,581

Supplier E $121,625 7% $ 8,514

Supplier F $111,453 5% $ 5,573

Supplier G $101,541 10% $ 10,154


$8.1 Million

Potential Savings Opportunity:

7%, $556K

Opportunity for Savings: MEDIUM-HIGH



services


Travel General and Fleet Services

6



Supplier A $1,845,201 10% $184,520

Supplier B $1,456,449 10% $145,645

Supplier C $221,940 10% $22,194

Supplier D $144,113 10% $14,411

Supplier E $101,991 10% $10,199

Supplier F $76,134 5% $3,807

Supplier G $70,963 5% $3,548

Supplier H $70,889 5% $3,544

Top Suppliers

Total Annual Spend: $8.1 Million*

Opportunity for Savings: MEDIUM-HIGH

Primary Savings Levers: Sourcing & Negotiation Account Service Review Rate Benchmarking

* Total spend includes individual travel charges, additional detail required to assess full scope of spend.


Marketing - General

7


$4.4 Million

Potential Savings Opportunity: 5%, $206K*




services



Supplier A $938,464 4% $37,539

Supplier B $183,585 5% $9,179

Supplier C $174,130 5% $8,707

Supplier D $172,162 8% $13,773

Supplier E $171,066 5% $8,553

Supplier F $146,939 5% $7,347

Supplier G $144,196 4% $5,768

Supplier H $117,381 5% $5,869

* The majority of this spend is for a specific scope of work potential savings opportunities exist in modifying the rate card(s) for future endeavors.


IT Products Software and Hardware

8

Total Annual Spend: $3.5 Million


5%, $180K


Primary Savings Levers: Sourcing & Negotiation Establish Volume Based

Pricing Specification

Standardization Supplier Consolidation



IT Products - Software

Supplier A $307,145 10% $30,714

Supplier B $252,278 4% $10,091

Supplier C $240,070 7% $16,805

Supplier D $197,514 7% $13,826

Supplier E $191,014 7% $13,371

IT Products - Hardware

Supplier A $685,097 3% $20,553

Supplier B $219,683 3% $6,590

Supplier C $121,175 3% $3,635

Supplier D $106,878 3% $3,206

Top Suppliers


Other Projects Opportunity Analysis

9



IT Consulting

Supplier A $307,908 5% $15,395

Supplier B $215,434 5% $10,772

Supplier C $179,888 5% $8,994

Supplier D $160,160 5% $8,008

MRO Supplies

Supplier A $194,470 15% $29,171

Supplier B $41,213 8% $3,297

Supplier C $25,895 12% $3,107

Supplier D $25,711 12% $3,085

Professional Services - Engineering

Supplier A $194,470 15% $29,171

Top Suppliers

Total Annual Spend: $1.4 Million*


7%, $98K


Primary Savings Levers: Sourcing & Negotiation Establish Volume Based

Pricing Specification

Standardization Rate Benchmarking &

Market Analysis

* A portion of this spend is for a specific scope of work potential savings opportunities exist in modifying the rate card(s) for future endeavors.


What We Need to Get Started

LOA Signed

Contracts, Pricing Agreements, Quotes

Invoices (Online Credentials if Available)

Supplier Contact Information

Customer Facility List with Main Point of Contact

10 www.sourceoneinc.com

spend analysis

Documents