Calculator

Supplier Consolidation Savings Estimator

Estimate savings from supplier consolidation and rate benchmarking.

This tool is educational and operational. It is not legal, engineering, or financial advice.

Processed in-browser. Nothing is stored.

Inputs

Optional. Used in the memo output.

$

Use last 12 months invoiced spend for the category.

%

Percent of spend covered by enforceable scope and buying channels.

%

Conservative reduction expected from consolidation, benchmarking, and re-bid.

Number of suppliers currently providing the category scope.

Target supplier count after consolidation.

$

Admin overhead per supplier per year (onboarding, AP handling, QBRs, audits).

$

One-time cost to transition suppliers (implementation, change management, tooling).

Results

Enter inputs and click Generate.

Assumptions

  • This is an estimate. Validate using invoiced spend and rate card data.
  • Savings apply only to in-scope spend that is controlled and compliant.
  • Rate reductions require enforceable scope definitions and invoice compliance checks.
  • Supplier reduction savings are overhead estimates; keep assumptions conservative.
  • Payback is transition cost divided by monthly savings.

How to use

  1. Enter annual spend, supplier counts, and benchmarking assumptions using conservative inputs.
  2. Generate results and sanity-check the savings percent of spend.
  3. Copy or download the memo before sharing with Finance and procurement leaders.
  4. Validate inputs with invoiced spend and rate card data.

What results mean

Estimated annual savings combines rate reductions and supplier overhead reductions.

Savings percent of spend shows the annual savings relative to total category spend.

Supplier count reduction captures the planned number of suppliers removed.

Common pitfalls

  • Assuming rate reductions without enforceable scope definitions and invoice controls.
  • Reducing suppliers without a transition governance plan.
  • Underestimating the effort to keep spend compliant after go-live.

Definitions

In-scope spend is the portion of spend covered by enforceable scope and buying channels.

Rate reduction percent is the expected pricing improvement from consolidation and benchmarking.

Supplier overhead includes administrative costs to manage each supplier relationship.

Change log

v1.0 (2026-01): Latest release