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Vendor under-performance drains resources both through direct value loss and the reactive administrative burden placed on procurement staff. Use this calculator to estimate the hidden costs across your own portfolio.
Your portfolio
Performance loss
$5.63M
Estimated value lost from vendor under-performance.
Staffing cost
$210K
Estimated staff time spent reacting to under-performance.
Total estimated annual cost of vendor under-performance
$5.84M
Based on 150 under-performing vendors, 6,000 staff hours, and $37.5M in affected vendor spend.
Avg. spend per vendor
$250K
Under-performing vendors
150
Affected spend
$37.5M
Reactive staff hours
6,000 hrs
Default based on Procurated performance data.
Limited to 10% - 20%.
* Under-performing vendor percentage default is per Procurated performance data.
** The performance loss assumption is based on McKinsey's cited 10% - 20% value range for improved contracting performance. Read the McKinsey analysis.
*** Estimate based on public-sector corrective action workflows requiring written notice, documentation, corrective action planning, tracking, follow-up, and internal review, plus third-party vendor management benchmarks citing 40 hours of potential savings from automating vendor performance tracking.
**** Hourly wage default is based on data from the Bureau of Labor Statistics.