Work out category spend analysis instantly with clear inputs, formula shown and shareable results.
Category analysis looks beyond total spend to the shape of it. A low average spend per supplier signals fragmentation, and a low average order value signals a transaction cost problem — both are addressable without any price negotiation at all.
Category share
Share % = Category spend / Total spend x 100
Average spend per supplier
Per supplier = Category spend / Supplier count
Average order value
AOV = Category spend / Purchase order count
When it approaches the cost of raising and processing the order, commonly 2,000-5,000. Below that, aggregate into scheduled or blanket orders.
High spend with high fragmentation. Concentrated categories are usually already well managed, so the incremental gain is smaller.