Spend Analysis Template
Total spend by category tells you where the money goes. This template goes one level deeper — by vendor — which is where the actual negotiating leverage and consolidation opportunities usually hide.
Spend Analysis Template
Vendor-level spend, PO count, average order value, and auto-calculating percent of total spend, with a consolidation-opportunity flag.
What this view catches that a category-level budget doesn't
A budget tracker organized by spend category (software, professional services, travel) tells you how much you're spending on each type of purchase. It doesn't tell you that three different departments are buying similar software from three different vendors, each with worse pricing than they'd get if that spend were consolidated. That pattern only becomes visible when you look at spend organized by vendor instead — which is exactly what this template does.
- Vendor name and category
- Total annual spend and number of purchase orders issued
- Average order value, calculated automatically
- Percent of total spend, calculated automatically across all vendors in the sheet
- A consolidation-opportunity column for your notes
How to read the results
Two patterns are worth specifically looking for once the sheet is filled in. First: high total spend spread across many small, frequent purchase orders with the same vendor — that's usually a strong candidate for consolidating into a blanket PO and negotiating better volume pricing. Second: multiple different vendors serving essentially the same category with meaningful combined spend — that's usually a signal worth a renegotiation conversation, or a decision to consolidate down to one preferred supplier.
Pull your spend and PO count data from your accounting system, ERP, or PO log — if that data currently lives in more than one place, this exercise is also a useful forcing function for getting it into one view for the first time. For the bigger picture on how this kind of analysis fits into ongoing procurement discipline, our procurement KPIs guide covers spend visibility as one of the metrics worth tracking continuously, not just as an occasional exercise.
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Common questions about this template
High spend spread across many small purchase orders with the same vendor is a strong signal for consolidating into a blanket PO. Multiple vendors serving the same category with overlapping spend suggests a renegotiation or single-source opportunity.
Typically from your accounting system, ERP, or purchase order log. If that data lives in different systems today, this template is also a useful forcing function for pulling it into one place.
Quarterly is a common cadence — frequent enough to catch shifting spend patterns, infrequent enough that meaningful changes have actually accumulated since the last review.
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