PrevPrev Go to previous topic
NextNext Go to next topic
Last Post 04/24/2017 9:03 AM by  JonA
Special spend as a % of total spend?
 3 Replies
Sort:
You are not authorized to post a reply.
Author Messages
SCMaster-jk2
SCM Analyst
Private
Veteran Member
(240 points)
Veteran Member
Posts:100


Send Message:

--
04/17/2017 1:22 PM

    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
    Sr Supply Chain System Analyst
    South Broward Hospital District
    Veteran Member
    (1831 points)
    Veteran Member
    Posts:625


    Send Message:

    --
    04/18/2017 12:47 PM
    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
    SCM Analyst
    Private
    Veteran Member
    (240 points)
    Veteran Member
    Posts:100


    Send Message:

    --
    04/19/2017 2:52 PM
    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
    Private
    Private
    Veteran Member
    (2766 points)
    Veteran Member
    Posts:972


    Send Message:

    --
    04/24/2017 9:03 AM

    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 - Supply Chain Analyst - Materials Management - MidMichigan Health
    You are not authorized to post a reply.