A step-by-step guide to summarizing costs, QC accuracy, and refund ratios for smarter purchasing decisions.
Annual data review is a cornerstone of strategic sourcing. The GTBuy Spreadsheet is designed to transform your yearly purchasing data into actionable insights. By systematically analyzing costs, Quality Control (QC) outcomes, and refund trends, you can identify strengths, pinpoint inefficiencies, and develop a clear roadmap for improved purchasing efficiency in the coming year.
1. Compile and Structure Your Annual Data
Begin by ensuring your GTBuy spreadsheet contains the complete year's data. Key columns should include:
- Item & SKU:
- Purchase Date & Price:
- Supplier Information:
- QC Result:
- Refund Status:
- Final Disposition:
- Purchase Date & Price:
Use spreadsheet filters and pivot tables to create a clean, structured dataset for the fiscal year.
2. Conduct the Three-Pillar Analysis
Pillar 1: Summarize Yearly Costs
Calculate total expenditure, but go deeper to spot trends.
- Total Spend by Month/Quarter:
- Average Cost Per Item by Category:
- Supplier Spend Allocation:
- Average Cost Per Item by Category:
Goal:
Pillar 2: Analyze QC Accuracy
Measure the quality of your purchased goods.
- Overall QC Pass Rate:
- Fail Rate by Supplier:
- Fail Rate by Product Category:
- Reason for Failure:
- Fail Rate by Supplier:
Goal:
Pillar 3: Calculate Refund Ratios
Quantify the financial impact of defective or incorrect items.
- Overall Refund Ratio:
- Refund Rate by Supplier:
- Correlation with QC Fails:
- Refund Rate by Supplier:
Goal:
3. Identify Key Trends and correlations
With the three pillars calculated, look for connections:
- Does your lowest-cost supplierhighest refund ratio? True cost includes refunds and operational waste.
- Is there a specific quarterQC accuracy drops? This could correlate with staff changes, rush orders, or a new supplier trial.
- Are you paying a premium for a supplierflawless QC and zero refunds? This might justify the higher price.
Create visual charts (bar graphs, line charts) within your spreadsheet to make these trends instantly recognizable.
4. Formulate an Action Plan for Improved Efficiency
Translate insights into actionable strategies for the next year:
- Supplier Re-evaluation:
- Budget Re-allocation:
- Process Adjustment:
- Target Setting:
- Budget Re-allocation: