Special spend as a % of total spend?

 5 Replies
 1 Subscribed to this topic
 38 Subscribed to this forum
Sort:
Author
Messages
SCMaster-jk2
Veteran Member
Posts: 100
Veteran Member

    We recently had a presentation by a vendor who analyzed our PO History and showed a large percentage of our spend was due to items ordered as a special. This was somewhat concerning but I could see justification for it in a way (most of the specials were rare, high cost items, such as a certain size screw, plates, etc).

     

    I was wondering, could anyone kind of give me a ball park of what your % special spend is compared to overall spend? People here are trying to focus on keeping this to a minimum and while we only have maybe a 10-20% special order rate, the % of spend compared to the total is quite high...

    Kat V
    Veteran Member
    Posts: 1020
    Veteran Member
      I don't track dollars - we track line count percentage. 20% of our PO Line is X type - this includes all capital, marketing and repair/replace. Because of the capital, the dollars tend to be "alarming and misleading" to quote a former director.
      SCMaster-jk2
      Veteran Member
      Posts: 100
      Veteran Member
        That's what I'm thinking too. A lot of people are throwing a fit but maybe they don't understand what people are buying as specials?
        JonA
        Veteran Member
        Posts: 1163
        Veteran Member

          I have a CR that compares spend by N and X items and breaks the spend down by supply (medical, office, repair, etc.) and non-supply (capital, equipment rental, contracted services, etc.) related expense.  Our percentage spend on specials is about 40% including capital, about 17% excluding capital.

           

          Jon Athey - Sr. Supply Chain Analyst - Materials Management - MyMichigan Health
          Mhoward
          New Member
          Posts: 1
          New Member

            JonA

            Would you be willing to share the CR that you delveloped for that report? 

            Matt

             

            JonA
            Veteran Member
            Posts: 1163
            Veteran Member

              That was a while ago.  Not sure if this is the right report but it should give you the data you need.  Just replace .txt with .rpt.

              Attachments
              Jon Athey - Sr. Supply Chain Analyst - Materials Management - MyMichigan Health