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A procurement analytics project simulating supplier performance review, bid evaluation, and material price forecasting using Excel.

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Anthoniya/Procurement-cost-analysis

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Procurement-cost-analysis

This project simulates a real-world procurement process for a construction company. Built entirely in Microsoft Excel, it analyzes supplier performance, spend behavior, bid comparisons, and future material costs to support smarter purchasing decisions.

| File | Description
| Procurement_Project_Dataset1.xlsx | Full dataset with sheets for purchase orders,
suppliers, bids, pricing history, forecasts, KPIs,
dashboards. | Procurement_Project_Report.docx | Analyst-style report documenting key findings, recommendations, and procurement insights from the project. | Material_Price_Forecasting_SOP.docx | Step-by-step SOP for forecasting material prices using Excel’s FORECAST.ETS.

Project Scope

Simulated for a mid-size construction firm managing multiple suppliers and core materials (Cement, Gravel, Steel).

Each phase of the procurement lifecycle was analyzed:

✅ Key Components

  1. Purchase Order Analysis

Tracked order volumes, lead times, and delays

Identified the most frequently ordered materials

Flagged suppliers with recurring late deliveries

  1. Spend Benchmarking

Compared company_spend vs. the average market prices

Found cost-saving opportunities (e.g., SUP01’s cement pricing)

Recommended renegotiation or supplier consolidation

  1. Supplier KPI Dashboard

KPIs tracked: On-Time %, Delay Days, Spend, Cost per Order

Underperforming suppliers are identified using clear thresholds

Added risk ratings to guide supplier decisions

  1. Bid Evaluation Matrix

Compared supplier quotes for Steel

Scored across price, lead time, warranty, and documentation

Used a weighted matrix to select the optimal bid

  1. Forecasting Material Costs

Used FORECAST.ETS to project pricing trends for (Cement, Gravel, Steel)

Cement remained stable, Steel showed a rising trend

Recommendations made to lock contracts or monitor closely

  1. SOP Checklist

Documented required compliance items for each procurement phase

Included folder naming rules and internal file tracking

Ensured readiness for audits or internal standardization

📊 Tools Used

Microsoft Excel (formulas, pivot tables, dashboards)

FORECAST.ETS (time-series forecasting)

Weighted matrix for bid scoring

Conditional formatting and data validation

📌 Key Takeaways

Supplier performance directly impacts cost and delivery timelines

Transparent bid evaluation improves decision accuracy

Market benchmarking helps uncover hidden savings

Forecasting supports proactive budget planning

SOPs reduce compliance risk

📈 Suggested Next Steps

Expand to include more POs and supplier categories

Automate parts of the dashboard using Power Query

Build a real-time dashboard in Power BI or Google Data Studio

Use this framework to guide sourcing decisions and quarterly reviews

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A procurement analytics project simulating supplier performance review, bid evaluation, and material price forecasting using Excel.

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