Vendor Performance Impact Calculator

Vendor under-performance creates measurable value loss across your portfolio. Use this calculator to estimate the annual cost based on your total vendor spend, vendor count, and a few simple assumptions.

Your portfolio

Total annual vendor spend

Total vendors

Total estimated annual value loss

$5.63M

Based on 150 under-performing vendors and $37.5M in affected vendor spend.

Avg. spend per vendor

$250K

Under-performing vendors

150

Affected spend

$37.5M

Assumptions

Under-performing vendors*

Default based on Procurated performance data.

Performance loss on those vendors**

Limited to 8% - 20%.

* Under-performing vendor percentage default is per Procurated performance data.

** The calculator allows an 8% - 20% performance loss range. McKinsey cites a 10% - 20% value loss estimate, and Deloitte estimates 8.6% contract value loss. Read the McKinsey analysis.

Cost of Under-Performance