Our Spend Assessment methodology identifies the most appropriate models for each supplier category, helping the procurement department analyze spending and plan future actions.
In the traditional view, the procurement professional had a limited, undifferentiated role and was generally transferred from another area of the company where he or she had not performed satisfactorily.
Activities were limited to ensuring the supply of products or services in response to purchase requests issued by internal requesters, and the relationship with the supplier market was characterized by friendly ties. In recent decades, the procurement function has undergone a true revolution, and today it is common to see positions such as CPO (Chief Procurement Officer) or vice president of procurement in large organizations, thereby reaching a level of strategic importance and being recognized as capable of helping companies achieve long-term results. To meet the expectations created around this “new” function, it is essential for a procurement manager to plan their actions so as not to limit themselves exclusively to operational activities and incident management within the department.
As such, applying the Spend Assessment or Spend Analysis methodology helps procurement managers plan their short-, medium-, and long-term actions so that they are aligned with the organization’s strategy.
Spend Assessment, or Spend Analysis, is simply strategic planning for the procurement function. This planning tool provides a clear view of the opportunities within each procurement category through Level Group’s Strategic Procurement Matrix—which identifies the most appropriate relationship models with the supplier market for each category—and the Project Prioritization Chart, which considers potential benefits and ease of implementation. Level’s methodology, which has been tested at numerous companies across a wide range of industries, consists of four steps and, like any planning tool, seeks to answer questions such as:
The Spend Assessment or Spend Analysis methodology (or, as mentioned above, strategic procurement planning) developed by Level addresses these questions through activities carried out in the four steps below:
Providing a template, mapping the data, and categorizing expenses for the survey.
Interviews with contract managers and buyers to map the history of contract awards.
Alignment of the identified categories with Level’s knowledge base and the history of previous negotiations.
Using both internal and external (market-based) perspectives on the categories, it is possible to create a map of opportunities.
Development of a plan based on the strategic procurement matrix and the chart for prioritizing cost-saving opportunities.
Workshop to develop activities for distributing the materials prepared for strategic supply planning.
Sample Contract
- Benchmarking with 5 companies in the agricultural sector
- Improving customer service without increasing costs
- Employee Transportation
Sample Contract
- Development of a toolkit and full implementation of the "
" methodology - Significant savings with a focus on product quality
- Package with 9 categories
Sample Contract
- Application of the technical evaluation matrix
- Selection of suppliers to improve quality and reduce costs
- Restaurant, Building Maintenance, and Technical Consulting
Sample Contract
- Conducting an auction as part of a model bidding process
- Significant savings while ensuring compliance with process rules
- Construction Projects
Sample Contract
- Comprehensive design, including implementation of an analytics department and support for hiring
- One-year implementation with delivery of six improvement projects
Sample Contract
- Scope covering supply chain areas such as foreign trade, PCP, and others
- Details on the implementation of 6 projects with PMO support
Sample Contract
- Alignment of the contract management process with all stages of the CLM
- Implementation focused on policy development and supplier management
Sample Contract
- Application of specialized methodologies
- Implementation of 24 initiatives focused on governance
We strongly believe in the consistent application of the Strategic Sourcing methodology because it is a rigorous and collaborative approach, with decision-making processes based on facts derived from market analysis and intelligence.
Our Project Management Office (PMO) works to develop improvements in project planning and execution. In this way, we help our clients manage their projects using evidence, accurate information, and decisive recommendations.
To optimize a company’s performance, it is essential to analyze the market in which it operates. We conduct comprehensive assessments of the supplier market, technologies, regulations, and associated risks.