IT Finance - Vendors - By Vendor Type report (v103)

Applies to: Costing Standard 11.8.x running on either TBM Studio v12 or TBM Studio v11.

Introduction

Use this report to review vendor spend by type of vendor: preferred, strategic, and transactional.

This report is designed for:

Use this report to review vendor spend by type (Strategic, Preferred and Transactional).

The vendor types are described as follows:

Preferred: Preferred vendors have been investigated by a company and approved. Often, procurement and contracting requirements have been met and the appropriate agreements, terms and conditions may be in place. Volume purchasing commitments may be established for better pricing and additional services. Vendors must often apply to enter a company's preferred program.
Strategic: All strategic vendors are also preferred vendors. The difference is that there are additional attributes that are of value to the company that may include: key buyer-supplier relationship, single source, joint technologies, legacy tooling, sustainability goals and other differentiating or important characteristics. When a company needs products or services, it turns to strategic and preferred vendors first.
Transactional: All remaining suppliers of products and services are considered transactional. Depending on the procurement controls in place, staff may only be allowed to purchase from transactional suppliers if the products or services are not offered through the company's strategic or preferred vendors.

The information presented on this report can be used to answer the following questions:

How much am I spending on vendors based on vendor type?
How does this break-out by OpEx and CapEx?
Do I have too much spend scattered across numerous transactional vendors?
If I have a vendor consolidation effort in place, am I seeing a reduction in the number of vendors and an increase in my preferred or strategic vendor spend?