Supplier Spend Review

What it is

The Supplier Spend Review shows exactly what your business spends, with which suppliers and on what. It finds where the same things are bought from too many places, where agreements are missing or out of date, and where the savings are, ranked by dollar value and effort. It suits businesses with many suppliers, typically $5 million turnover and above.

How we do it

We take two years of your supplier payments and sort them into clear groups, such as freight, materials, vehicles or IT, so you can see the total spent on each.

We rank your suppliers by spend and show who in the business buys from each, and whether there is a current agreement or price list in place.

We then find the savings, such as buying the same thing from many suppliers, paying list price where a better deal is available, or agreements that have lapsed, and rank each by its likely dollar value and the effort to get it.

Is this for you?

Clients usually call us for this when:

• Costs are rising faster than sales.
• The business has grown and buying is now spread across people and sites.
• Nobody is quite sure what you spend with each supplier.
• Supplier agreements are old, or there aren't any.
• You want savings without cutting staff.

What you receive, and what each gives you

• Spend map, unlocked: two years of supplier payments grouped into clear categoriesA clear map of two years of spending, grouped into categories, in a spreadsheet you keep.
• Supplier list ranked by spend, with who buys from each and on what termsYour suppliers ranked by spend, with who buys from each and on what terms.
• Where agreements are missing or out of date, and where the same thing comes from many suppliersWhere agreements are missing or out of date, and where the same thing comes from too many suppliers.
• Ranked savings list with the likely dollar value and effort of eachA ranked list of savings, each with a likely dollar value and how much effort it takes to get.
• Findings report with a one-page summary, and a 60-minute session with the ownersA report with a one-page summary, and a 60-minute session with the owners to agree what to go after first.

What changes for you

• A full view of spending that was scattered across people, sites and systems.
• Real savings, ranked, so you go after the biggest and easiest first.
• Better agreements with your main suppliers.
• Buying that is easier to control as the business keeps growing.

The questions it answers

• What are we really spending, and with whom?
• Where are we paying too much?
• Which savings should we go after first?

Words we use, explained

Spend category

A group of similar purchases, such as freight or materials, so you can see the total spent on each.

Supplier agreement

A written deal with a supplier that sets prices and terms, rather than paying whatever is on the invoice.

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:

• Supplier payments for the last 2 years (an export of bills or payments from the accounting system, with supplier, date, amount and account)
• Chart of accounts
• List of supplier agreements, contracts or price lists currently in place
• Who is allowed to buy, and any purchasing approval rules
• Sites, divisions or cost centres, if the business has more than one
• Any recent quotes or price increases from key suppliers
• Categories you already think are overspent

Not included

• Negotiating with suppliers or running tenders for you.
• Legal review of supplier contracts.
• Putting the savings in place.
• The savings values are estimates to rank priorities; some need quotes or negotiation to confirm.

The technical detail

Two years of supplier payments grouped into categories, suppliers ranked by spend, missing or out-of-date agreements and duplicate buying found, and savings ranked by dollar value and effort. Best suited to businesses with many suppliers, typically $5 million turnover and above.

Often paired with

Pricing and Profitability Review: Savings on costs are one side of profit; the Pricing and Profitability Review looks at the other side, making sure every product and customer is priced to cover its true cost.

Business Operating Review: The Business Operating Review puts the savings in context alongside cash, pricing and capacity, and ranks the three changes worth most to the business overall.

Common questions