spend analysis

| February 4, 2015

Your company, Superior Equipment, has many suppliers providing a variety of goods and services. On the attached spreadsheet, you will find the commodity categories that you have been assigned to rationalize and optimize for Superior Equipment. Your boss, Mr. James Hastings, has asked you to prepare a professional report incorporating a comprehensive step-by-step Spend Analysis to recommend the reduction of this supply base by ten percent. Attached you should find the raw data for you to conduct a spend analysis. Refer to your textbook on pages 198-203 for the step-by-step instructions for getting started on this assignment. You will submit two files in the dropbox. 1. Your Excel spreadsheet with all of the necessary graphs. You must have a minimum of the following graphs: Annual spend by commodity Number of suppliers per commodity Average spend per supplier by commodity % spend by commodity % of spend by MRO subcategory suppliers (for example, a graph of the breakdown of all chemical suppliers, another with all plumbing suppliers & so on) % of spend by Valve subcategory suppliers % of spend by Hose subcategory suppliers % of spend by Motor subcategory suppliers 2. A Word document of the final report regarding your recommendations. I would recommend the final report be in memo form addressed to your boss. This professional memo needs to include important observations you’ve made, recommendations for supplier elimination/reduction based on your findings (accompanied by a comprehensive list of questions or concerns that still need investigated prior to final elimination of suppliers). Although you are not limited by a maximum, your boss has given you a target of eliminating approximately ten percent of the suppliers in your assigned categories.

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Analyze the authors argument
business Failure

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