Procurement Analysis

The Data Analysis Group is a Melbourne provider of advanced procurement analysis and modelling services.

Our strong analytical backgrounds, high-end technology and industry experience provide you with data-driven whole-of-life financial models that empower you to optimise your procurement and supply chain categories.

Our procurement analysis services are suited to clients who have:

  • More transactional category-data than what they can process in Excel.
  • Insufficient internal capabilities and require access to skilled analysts, or to up-skill internal teams.
  • Currently under resourced and require urgent analysis and modelling within project deadlines.
  • Taken a different direction or approach and require analytic support.
  • Advanced capabilities but are looking for new ideas and innovative analysis methods.

Case Study: Catalogue Printing and Manufacture

Procurement Analysis and Modelling Services - Catalogue Printing and ManufactureA well-known grocery retailer elected to tender their $197m printed catalogues category. Historically, their RFT model required suppliers to price over 300,000 line-items. Vendors took 12 weeks to complete the RFT and head office took 8 weeks to adjudicate. However this time, the whole process needed to be completed in just one month.

By breaking up the final products into their primary material and labour components, we were able to reduce the priced line-items to just over 1,000, without sacrificing any pricing accuracy.

This less onerous approach encouraged smaller suppliers to participate, thereby increasing competition. Project was completed on time with a 9% annualised saving, and improvements in quality, efficiency and strategic partnerships.

Final prices were coding into a Visual Basic ‘Rates Card’, enabling the Brand Marketing Managers to easily determine optimal prices and vendors for the various catalogue formats.

Case Study: Truck & Equipment Maintenance Management

Procurement Analysis and Modelling Services - Fleet Maintenance ManagementA well-known Australian organisation had been unable to control maintenance spending on their 500+ truck and equipment fleet.

This was understood to be due to a zero tolerance of operating failure, as well as a diversity of servicing regimes at more than 80 remote locations throughout Australia. The Divisional GM deemed the situation ‘out of control’ and initiated a project to implement a best practice solution.

Meticulous data-mining of historic spend highlighted the gaps and weakness in their current system. RFQ documentation was updated cover these areas.

A data-driven whole-of-life model was used to optimise the useful life of the equipment.

Submitted tenders were evaluated via total cost modelling, whilst monte-carlo simulation was used to evaluate impacts of ‘what if’ scenarios.

The client achieved a sustainable reduction in annual spend of greater than 30% with significantly reduced equipment downtime.

Case Study: Tool of Trade Fleet

Procurement Analysis and Modelling Services - Tool of Trade FleetOver a period of 4 years, initial savings from annual tenders for a fleet of 1300+ leased tool of trade vehicles had diminished to almost zero. The client initiated a project to investigate alternative savings opportunities.

Produced an all-encompassing whole-of-life predictive analysis model based on ownership and running costs. This enabled us to accurately simulate alternative savings scenarios and optimise the lease periods per vehicle category.

The model was used to accurately evaluate both tangible and intangible aspects of RFT submissions and identify hidden areas of value that were secured in subsequent supplier negotiations.

The client achieved a 26% annualised saving, with contracts in place for 4 years.

Typical Procurement Analysis Projects

We provide a range of procurement analysis services that support your drive to improve organisational efficiency and financial performance. Our solutions are flexible and customised to meet your desired outcomes. Typical projects include:

  • Asset life optimisation
  • Benchmarking, profiling, total-cost & whole-of-life financial models
  • Capital project valuation
  • Category identification and management
  • Distribution and transportation optimisation
  • Fixed asset utilisation and efficiency analysis
  • Funding optimisation
  • Inventory optimisation
  • Sourcing of products and services
  • Maintenance management

Contact Us

If you have a procurement analysis challenge or opportunity, we can help. We’ve been around since 2005 and worked on a diverse range of projects. Call us for a friendly discussion on 1300 788 662 or submit the form below.