Blog · Industry
Which suppliers hold more of a category than the contract allows. Which site is buying off-contract. Which category depends on one supplier with no second source. From the purchase ledger, reconciled to accounts payable.
How a procurement team measures contract compliance from the purchase ledger: spend by supplier against the contracted share per category, off-contract purchases by site and requester, single-source exposure, and the reconciliation to accounts payable.
16 Sept 20263 min readWhy category-level compliance figures hide the real finding, how a procurement team breaks off-contract spend down by site and requester from the purchase ledger, the three patterns that account for most of it, and the conversation each pattern needs.
16 Sept 20263 min readHow a procurement or treasury team measures actual days to pay against the terms in each supplier's contract, from the invoice and payment ledgers: the suppliers paid well before terms, the working capital that early payment ties up, the suppliers paid late who are charging for it in price, and the identity that ties the days-to-pay figure to the payables ledger.
16 Sept 20263 min readHow a procurement team, or the finance team checking it, measures whether a claimed saving reached the ledger: the baseline price per item before the sourcing event, the contracted price after, the invoiced price actually paid per line, the volume that moved to the contracted supplier, savings claimed against savings realised per category and per project, the leakage between the two by cause, and the identity that ties realised savings to the difference in what was paid.
16 Sept 20263 min readHow a procurement team measures spend under management from the payables ledger and its own sourcing records: spend on contracts procurement negotiated, spend on catalogued or approved suppliers, and spend that reached payables without procurement's involvement, by category and by business unit, why the third bucket is where savings claims fail, and the identity that ties the three to total third-party spend.
16 Sept 20262 min readHow a procurement team counts active suppliers per category from the purchase ledger, values the long tail in transaction cost rather than spend, finds the suppliers with one order a year that a contracted supplier could cover, and separates the tail worth consolidating from the specialist suppliers the tail is hiding.
16 Sept 20262 min readThe ten questions a CPO puts to the category managers, how much spend do we actually manage, where is off-contract buying coming from, did the savings reach the ledger, how many suppliers are in the tail and which to keep, are we paying to terms, where is single-source risk, which suppliers are slipping, is the contract price being applied, which contracts expire when, and what changed, each with the computed table from the payables ledger and the contract register, the identity behind it, and the answer a CPO should not accept.
16 Sept 20263 min readHow procurement teams should choose analytics software: start from the questions, check the data you hold, ask vendors ten questions, avoid the traps.
24 Sept 20264 min readThe ten KPIs a procurement function should run on, each with its formula, the export it comes from and what it tells you: spend under management by invoice, contracted share against actual spend by category, maverick spend by requester, savings realised against savings claimed, suppliers per category and the tail, payment terms compliance, supplier performance against own baseline, contract expiry coverage, price variance on like items, and supplier concentration. Also the three measures most teams miss, the figures to drop, the identities, and who owns what.
17 Sept 20264 min readThe complete spend under management calculation on ten payables invoices, small enough to check by hand: each invoice's supplier, category, business unit and PO reference, the contract register's in-force agreements, the approved supplier list, the bucket per invoice, on contract, approved off contract, or unmanaged, the share by category and by unit, the uncategorised invoice that is its own finding, and the identity that the three buckets sum to total spend, so a reader can reproduce every figure and then run it on their own payables export.
17 Sept 20263 min readThe honest answer to what share of spend procurement should manage: the 60 to 85 percent figures quoted depend on what managed means, on which spend is addressable, and on whether the figure is computed from invoices or claimed from contracts. This page gives the ranges by maturity, the three measurable things that set the right figure for one organisation, and the table to compute before anyone quotes a percentage.
17 Sept 20263 min readSupplier share of wallet analytics. Where your spend goes, against where it was contracted to go.
See the page