“Who are we paying, for what, under which contract, and where is the leakage?”
What it is
Visibility of what the organisation actually spends, with whom, under what contracts, and where the savings are.
Three years of accounts payable classified into a spend taxonomy, matched to the contract register, with maverick spend, supplier concentration and consolidation opportunities quantified.
When clients call us
A savings target, an audit finding on procurement compliance, a new procurement manager, or preparation for a category-based sourcing program.
What you receive
Spend analysis dashboard or workbook
Category spend profile
Contract coverage assessment
Prioritised savings roadmap with indicative values and effort
Report and presentation
What we’ll need from you
A one-page checklist comes with the engagement letter, with a private page to upload everything. The main items:
Accounts payable transaction extract, last three financial years, with supplier, date, amount, description and cost centre
Supplier master file
Contract register
Purchase order data if separate from AP
Procurement policy and delegation thresholds
Existing panel or standing offer arrangements
Corporate card or low value purchasing data
Not included
Does not include negotiation or sourcing execution, does not include contract legal review, does not verify that identified savings are achievable without further sourcing work, and does not include implementation.
What it can look like
Representative example
A council with a procurement finding from its auditors · Procurement Spend Analysis
Finding $610,000 a year in supplier spend
The audit letter noted that too much spending sat outside contracts. The contract register listed 140 arrangements, but three years of accounts payable showed 1,900 suppliers.
$610,000 a yearEstimated saving from consolidation
23% to 14%Off-contract spend
$38m over 3 yearsSpend analysed
Supplier spend with no contract in place
Before the review23%
First year of reporting14%
Down 9 points
Where the gap was
Four categories (plant hire, cleaning, traffic control and IT peripherals) were split across dozens of suppliers at different prices. Consolidating them is worth about $610,000 a year.
Insight
Of $38m in supplier spend over three years, 23% was with suppliers who had no contract, and four categories (plant hire, cleaning, traffic control and IT peripherals) were split across dozens of suppliers buying the same thing at different prices.
Advice
Put the four fragmented categories to market as panels, tighten purchase-order controls for spend above the quotation threshold, and report off-contract spend to the audit committee quarterly.
Opportunity
An estimated $610,000 a year from consolidating the four categories, plus a clear answer to the audit finding.
Results
Two of the four panels were in place within six months, and off-contract spend fell from 23% to 14% in the first year of reporting.
Representative example: a composite scenario with narrative-driven figures, showing the kind of result this work is designed to produce. It is not a specific client engagement and the outcome is not a guarantee. A full case study walk-through is available on request.
Common questions
How much does a procurement spend analysis cost?
From $10,000 plus GST ($11,000 including GST), usually over four to six weeks.
What data do you need?
Around three years of accounts payable transactions exported from the finance system, and the contract register.
What do we get?
Spend classified into categories and matched to contracts, off-contract spend, supplier concentration and the consolidation opportunities quantified in dollars.
