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KPI · Inventory, purchasing and production

Spend per supplier: formula and example.

Spend per supplier is the total amount you buy from each supplier in a period, often shown as a share of total purchasing spend. It is the starting point of a spend analysis. It shows where you have the most negotiating power and where you depend on a single supplier.

Spend per supplier formula

Purchase spend with a supplier in the period; share = supplier spend ÷ total spend × 100%

Worked example

In 2025 Acme Groothandel spent €4,500,000 across all its suppliers. With its largest supplier it spent €1,080,000. That supplier's share is €1,080,000 ÷ €4,500,000 × 100% = 24.0%.

Fictitious figures for Acme Groothandel, a sample wholesaler.

How to read this KPI

A large share with one supplier gives you leverage, but also dependency if that supplier cannot deliver. A long tail of small suppliers costs a lot of admin per euro spent. Compare the distribution with last year and set it against on-time delivery and price movements per supplier.

Pitfalls with spend per supplier

  • Leaving the same supplier under several account numbers or names, which understates its share.
  • Mixing amounts including and excluding VAT.
  • Not netting off credit notes and rebates against spend.

SQL & DAX

Calculating spend per supplier in SQL and DAX

Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.

SQL · PostgreSQL
SELECT s.name AS supplier,
       COUNT(*) AS invoices,
       SUM(pi.amount) AS spend,
       ROUND(100.0 * SUM(pi.amount)
             / NULLIF(SUM(SUM(pi.amount)) OVER (), 0), 1) AS spend_share_pct
FROM purchase_invoices pi
JOIN suppliers s ON s.supplier_id = pi.supplier_id
WHERE pi.invoice_date >= date '2025-01-01' AND pi.invoice_date < date '2026-01-01'
GROUP BY s.name
ORDER BY spend DESC;
DAX · Power BI
Purchase Spend = SUM(PurchaseInvoices[Amount])
Spend Share = DIVIDE([Purchase Spend], CALCULATE([Purchase Spend], ALL(Suppliers)))

In ENABLE

Tracking this KPI in ENABLE

Plain-language questions

Ask for spend per supplier per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.

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In your Power BI dashboard

Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.

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Custom dashboards (pilot)

Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.

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Monthly targets

With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.

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FAQ

Frequently asked questions

What is a spend analysis?

A spend analysis is an overview of all your purchasing spend, broken down by supplier, category and department. Spend per supplier is the first step. It shows where you can consolidate purchasing, negotiate better or spread risk.

How do you calculate spend per supplier?

Add up each supplier's purchase invoices for the period, excluding VAT and after credit notes. Divide each amount by the total to get the share. Merge duplicate suppliers first, or the distribution will be wrong.

When are you too dependent on one supplier?

There is no fixed threshold; it depends on how easily you could switch and how critical the products are. A high share with a supplier of hard-to-replace items is a bigger risk than with standard products. Look at share and replaceability together.

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