Spend analysis checklist
What are the key spend areas for your organisation?
- List in the spend/ impact/ influence analysis template the 5-10 significant spend areas, or list spend areas over and above a certain spend threshold (to be determined by the agency).
- Against each spend area assess risk as high, medium or low using the following questions as a prompt.
- The highest number of responses to high, medium and/or low determines the risk for particular aspects categorised below
What is the Sustainability Risk (environmental aspects)? (High/ Medium/ Low)
| 1. Resource use |
Does the product (or the volume of products) use significant amounts of resource? |
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| 2. Hazardous materials |
Does the product contain or use chemicals/ oils/ hazardous substances? |
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| 3. Non-renewable |
Does this product contain non-renewable or high levels of virgin materials |
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| 4. Manufacture |
Are there sustainability impacts in the manufacture of this product, e.g. emissions, pollutants, water, energy use? |
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| 5. Packaging |
What types and volumes of packaging will be used and how will it be disposed of? |
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| 7. Use |
Impacts from/during use, e.g. quantity and types of consumables, energy requirements, water requirements, emissions
Will the product require large amounts of spare parts, maintenance? |
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| 8. End of Life |
What are the end-of-life impacts, e.g. opportunity to recycle or reuse, disposal impacts. |
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| 9. Others |
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| What is the overall sustainability risk (environmental)? High/ Medium/ Low |
What is the sustainability risk (social aspects)?
| 10. Health and safety |
Are there any health & safety issues associated with this product either during manufacture or use? |
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| 11. Developing world supply chain |
Is it likely that this product or its key components originate in the developing world? |
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| 12. Employee exploitation |
Is there the potential for supplier's employees to be exploited e.g. low pay, antisocial hours, language issues? |
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| 13. Others |
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| What is the overall sustainability risk (social)? High/ Medium/ Low |
What is the agency's influence in the market (with the supplier)?
Analyse the spend areas to determine your influence as a purchaser i.e. consider your agency from the vendor's perspective.
| 14. Does your agency represent more than 0.5% of supplier turnover? |
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| 15. Is your agency easy to work with (efficient in its business dealings)? |
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| 16. Does the business with your agency provide strategic opportunities for the supplier? |
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| 17. Is your organisation a key client to have in order for the supplier to win other business? |
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| 18. By working with your organisation does the supplier improve? |
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| 19. Are the suppliers operating in a saturated / competitive market? |
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| 20. Does your agency have high switching costs from one supplier/product to another, or is there limited supply? |
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| 21. Do you pay on time? |
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| What is your influence in the market? High/ Medium/ Low |
What is the scope to improve?
Analyse the spend areas to determine the scope for sustainability improvement. Can we achieve sustainability benefits?
| 22. Standards - Is there an eco-label / product / supplier declaration associated with this product that provides benchmark practice? |
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| 23. Is there precedent or guidance regarding sustainability practice (e.g. being done elsewhere)? |
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| 24. Are there reuse options available for end of life, could the product be designed for reuse, disassembly, composting? |
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| 25. Is there scope for improvements identified through demand management & needs analysis/review? |
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| What is the scope for improvement? High/ Medium/ Low |
Are there any other agency considerations?
Analyse the "internal" agency factors to determine suitability
| 26. Timing, e.g is there a contract review/renewal due soon? |
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| 27. What will be simple to do - for your agency? |
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| 28. What has best fit with your agency priorities and culture? |
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| 29. Are there any priority sustainability areas that have strong top leadership support? |
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| 30. Are there any communication and/or 'cultural' issues, e.g. ability to influence stakeholders? |
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| 31. Can you generate support through a strong business case identifying the benefits? |
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| How well do internal agency factors support the area as a target? High/ Medium/ Low |
Spend/ impact & influence analysis template
Using the above checklist, rank each area as high, medium or low
| Product/Service |
Expenditure$ |
Sustainability Impact |
Market influence |
Scope to improve |
Agency Fit |
Rating |
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Environmental |
Social |
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Last updated May 2009
