Spend Analysis
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Transcript of Spend Analysis
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Sample Spend Analysis
COLLABORATION EXPERIENCE OBJECTIVITY CREATIVITY PRECISION
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Executive Summary
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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
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Total Spend: $39.0M
3 www.sourceoneinc.com
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Professional Services - Consulting
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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.
www.sourceoneinc.com
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IT Services - Maintenance
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Supplier Name Annual Spend Potential Savings %
Potential Savings Amount
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
Top Suppliers Total Annual Spend:
$8.1 Million
Potential Savings Opportunity:
7%, $556K
Opportunity for Savings: MEDIUM-HIGH
Primary Savings Levers: Sourcing & Negotiation Service Rationalization/
Scope Review Consolidation of like
services
www.sourceoneinc.com
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Travel General and Fleet Services
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Supplier Name Annual Spend Potential Savings %
Potential Savings Amount
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.
www.sourceoneinc.com
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Marketing - General
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Top Suppliers Total Annual Spend:
$4.4 Million
Potential Savings Opportunity: 5%, $206K*
Opportunity for Savings: MEDIUM
Primary Savings Levers: Sourcing & Negotiation Service Rationalization/
Scope Review Consolidation of like
services
Supplier Name Annual Spend Potential Savings %
Potential Savings Amount
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.
www.sourceoneinc.com
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IT Products Software and Hardware
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Total Annual Spend: $3.5 Million
Potential Savings Opportunity:
5%, $180K
Opportunity for Savings: MEDIUM
Primary Savings Levers: Sourcing & Negotiation Establish Volume Based
Pricing Specification
Standardization Supplier Consolidation
Supplier Name Annual Spend Potential Savings %
Potential Savings Amount
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
www.sourceoneinc.com
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Other Projects Opportunity Analysis
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Supplier Name Annual Spend Potential Savings %
Potential Savings Amount
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*
Potential Savings Opportunity:
7%, $98K
Opportunity for Savings: MEDIUM
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.
www.sourceoneinc.com
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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