Vendor & Procurement Spend Concentration Risk

Helix Systems Corp. • Q2 2024 • $22.4M Addressable Vendor Spend

Last Updated
Jun 15, 2024
Critical Alert: McKinsey engagement ($620K) lapsed Feb 2024 — now 100% maverick spend. Oracle renewal ($2.4M) in 42 days represents 31% of software budget concentration.
Total Managed Spend YTD
$11.2M
+4.2% YoY
Vendor Concentration (HHI)
1842
High Risk
Maverick Spend Rate
18.3%
+9.1pp MoM
Contract Coverage Ratio
81.7%
Target: 85%
Renewals Next 90d
$3.8M
7 contracts
Single-Source Categories
11
Critical: 4

Vendor Concentration by Spend Category (HHI)

Software
Cloud Infra
Prof Services
Hardware
Marketing
Facilities
Q1 2024
2847
1623
1402
892
742
621
Q2 2024
3124
1891
2640
814
698
589
Critical (>2500)
High (1500-2500)
Moderate (1000-1500)
Low (<1000)

Top 10 Vendors by Spend Share

Maverick Spend by Department

Spend Distribution by Category

Software
$7.8M
34.8%
Cloud Infrastructure
$4.2M
18.8%
Prof Services
$3.6M
16.1%
Hardware
$2.9M
12.9%
Marketing
$2.1M
9.4%
Facilities
$1.8M
8.0%

Single-Source Dependency Risk

Oracle Database
Annual Spend: $2.4M • Software
CRITICAL
AWS
Annual Spend: $1.8M • Cloud
HIGH
Salesforce
Annual Spend: $840K • Software
HIGH
Dell Hardware
Annual Spend: $720K • Hardware
MODERATE
Google Workspace
Annual Spend: $420K • Software
MODERATE

Vendor Risk Profile & Upcoming Renewals

Vendor Primary Category YTD Spend Category Share HHI Contribution Renewal Date Risk Level
Oracle Corporation Software $2,412,000 30.9% 955 Jul 27, 2024 CRITICAL
Amazon Web Services Cloud Infrastructure $1,848,000 44.0% 1936 Dec 31, 2024 HIGH
McKinsey & Company Professional Services $1,240,000 34.4% 1184 Lapsed (Feb '24) MAVERICK
Salesforce Software $840,000 10.8% 117 Sep 15, 2024 HIGH
Dell Technologies Hardware $724,000 25.0% 625 Nov 1, 2024 MODERATE
Microsoft Software $680,000 8.7% 76 Jan 10, 2025 LOW
Google (Workspace) Software $420,000 5.4% 29 Aug 20, 2024 MODERATE
Slack Technologies Software $380,000 4.9% 24 Oct 5, 2024 LOW

Spend Under Management Trend

Contract Coverage Ratio

Category Velocity (MoM Growth)

Monthly Spend by Category (Last 12 Months)

Payment Terms Analysis

Net 30 42%
Net 45 28%
Net 60 18%
Net 90+ 12%
Optimization Opportunity: Extending 30% of Net-30 contracts to Net-45 could improve cash flow by ~$340K annually.
Supplier Diversity Spend
$2.8M
12.5% of total • Target: 15%
Price Variance vs. Contract
+2.4%
$268K in overages YTD
Active Vendor Count
142
Rationalization target: 120 by Q4