Nordic Procurement Labs
Early-Stage Procurement Value Simulator
Estimate the value of improving how you define requirements, find suppliers, engage them, and compare bids.
How you want to use it
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Results
Results update as you edit
Change the inputs on the left to see the estimate update right away.
Estimated Annual Value Available
$97.486
Total estimated yearly value from the current inputs.
Estimated Annual EBITDA Uplift
$18.182
The part of the estimate that more directly affects operating profit.
How the total value adds up
See which areas contribute most to the total annual value
This breakdown shows how each area adds to the total estimate.
Direct savings
$18.182
Savings from stronger supplier competition.
Share of total annual value
Internal time savings
$68.400
Time saved across requirements, supplier search, outreach, and comparison.
Share of total annual value
Risk reduction
$10.904
Lower expected loss from supplier problems, poor-fit choices, reruns, weak early validation, and wrong-supplier impact after conservative bundled Step 5 sequencing.
Share of total annual value
Value by applied lever
See which applied lever contributes most to the estimate.
Define Better
$18.011
Write clearer requirements and reduce rework.
Discover Wider
$26.412
Find more suppliers and improve competition.
Engage Smarter
$28.080
Reduce follow-up work and catch issues earlier.
Compare Better
$24.984
Compare bids more clearly and reduce avoidable mistakes.
Today vs improved
This shows how the process changes under the improvements you entered.
| Metric | Baseline | Improved | Interpretation |
|---|---|---|---|
Hours per event | 46 hrs | 18 hrs | Combined requirement, discovery, outreach, and comparison hours. |
Total hours per year | 1.104 hrs | 420 hrs | Total internal effort required for the yearly events. |
Average qualified bids | 2 | 8 | Average qualified bids after the current improvements. |
Requirements issues rate | 20% | 12% | Share of events with requirements issues that lead to a major re-scope, rerun, or specification-linked downstream changes. |
Estimated yearly loss from wrong-supplier events | $40.000 | $29.096 | Expected yearly loss from supplier failures, poor-fit choices, reruns, weak early validation, and downstream wrong-supplier impact after conservative bundled Step 5 sequencing. |
Time to shortlist | 45 days | 27 days | Average time to reach a shortlist where time data was provided. |
How we calculate it
Open each section to see the formula and the current numbers behind the estimate.
Direct savings
Savings from stronger supplier competition.
$18.182
Direct savings
Savings from stronger supplier competition.
$18.182
Baseline competition score
0,423
Formula
1 - e^(-0,55 × (qualified bids today - 1))
With your numbers
1 - e^(-0,55 × (2 - 1))
Improved qualified bids after supplier-pool cap
8 bids
Formula
Clamp(current bids + improvement effects, current bids, supplier-pool ceiling)
With your numbers
Clamp(2 + 7,15; min 2; max 8)
Projected qualified-bid upside is capped by an available supplier pool of 9.
Improved competition score
0,979
Formula
1 - e^(-0,55 × (improved qualified bids - 1))
With your numbers
1 - e^(-0,55 × (8 - 1))
Savings rate after realism factors
36,4%
Formula
((improved score - baseline score) / competition score at 8 bids) × incumbent factor × price-dispersion factor × low-competition factor
With your numbers
((0,979 - 0,423) / 0,979) × 1,05 × 1 × 0,61
Direct savings
$18.182
Formula
Annual spend × competition savings cap × savings rate
With your numbers
$1.000.000 × 5% × 36,4%
Internal time savings
Time saved across requirements, supplier search, outreach, and comparison.
$68.400
Internal time savings
Time saved across requirements, supplier search, outreach, and comparison.
$68.400
Drafting savings
$13.440
Formula
(hours today - hours after improvement) × hourly cost × annual events
With your numbers
(8 hrs - 2,4 hrs) × $100 × 24 events
Discovery savings
$9.600
Formula
(hours today - hours after improvement) × hourly cost × annual events
With your numbers
(8 hrs - 4 hrs) × $100 × 24 events
Outreach savings
$28.080
Formula
(hours today - hours after improvement) × hourly cost × annual events
With your numbers
(18 hrs - 6,3 hrs) × $100 × 24 events
Evaluation savings
$17.280
Formula
(hours today - hours after improvement) × hourly cost × annual events
With your numbers
(12 hrs - 4,8 hrs) × $100 × 24 events
Total internal time savings
$68.400
Formula
Drafting + discovery + outreach + evaluation savings
With your numbers
$13.440 + $9.600 + $28.080 + $17.280
Risk reduction
Lower expected loss from supplier problems, poor-fit choices, reruns, weak early validation, and wrong-supplier impact after conservative bundled Step 5 sequencing.
$10.904
Risk reduction
Lower expected loss from supplier problems, poor-fit choices, reruns, weak early validation, and wrong-supplier impact after conservative bundled Step 5 sequencing.
$10.904
Baseline bundled failure loss
$40.000
Formula
Wrong-supplier event frequency × event impact
With your numbers
2 × $20.000
Define Better reduction
$3.200
Formula
Baseline bundled failure loss × (requirements issues rate × requirements-issue reduction)
With your numbers
$40.000 × (20% × 40%)
Remaining loss after Define Better
$36.800
Formula
Baseline bundled failure loss - Define Better reduction
With your numbers
$40.000 - $3.200
Compare Better reduction on the remaining loss
$7.704
Formula
Remaining loss × (((disruption reduction + hidden-impact reduction) / 2) × (1 + selection lift / 4) × concentration factor)
With your numbers
$36.800 × (((30% + 25%) / 2) × (1 + 35% / 4) × 0,7)
Single-point-of-failure input: 25%. Missing concentration data defaults to a neutral conservative factor.
Final risk reduction after the 40% cap
$10.904
Formula
Min(Define Better + Compare Better, baseline bundled failure loss × 40%)
With your numbers
Min($10.904, $40.000 × 40%)
The 40% cap did not bind for these inputs.