From 17x Industry Benchmark to Optimized Efficiency: A Data-Driven Supplier Strategy

Strategic Sourcing Analysis & Recommendations

SWDchallenge

2025

A strategic sourcing case study showcasing how to transform supplier performance data into compelling executive presentations. Uses SCQA framework and consistent color strategy to guide from $47M overspend problem to $1.3M savings solution.

Author

Steven Ponce

Published

May 2, 2025

Original Business Case

This month’s Storytelling with Data exercise aims: Imagine that you work for a regional medical group that manages care facilities across your state. As part of a team responsible for reviewing medical products and evaluating suppliers, your role involves shaping company-wide strategies and policies across various medical centers. Recently, you and your team completed a strategic sourcing project assessing four suppliers (Suppliers A, B, C, and D) for a critical product category (XYZ Products).

You have access to robust data, including historical usage and costs by medical center, satisfaction metrics from physicians and patients, and cost projections. The options on the table range from a single-supplier company-side contract to allowing each medical center to continue managing its own purchasing, each with clear trade-offs.

You’ve put together a deck with your team to present the findings to the decision-makers. Your goal is to drive discussion and help the group reach a decision on future strategy. Below are the slides you’ve prepared.

Additional information can be found HERE

Makeover Business Case

Figure 2: Four-slide strategic sourcing presentation showcasing a transformation from a 17x industry benchmark overspend to $1.3M in annual savings. **Slide 1** displays a bar chart comparing the current $50M spend with the industry standard of $2.8M. **Slide** 2 shows a quadrant analysis, identifying Supplier C as the optimal choice (green dot in the bottom-right quadrant, characterized by high performance and low cost). **Slide 3** presents three forecast scenarios through 2028, with a dual supplier strategy (green line) resulting in $1.27M in savings compared to the status quo (red line). The **title slide** introduces the data-driven supplier strategy approach.

Steps to Create these Graphic

Note: The charts were generated using R and ggplot. The slide deck was build using MS PowerPoint.

1. Load Packages & Setup

Show code

```{r}
#| label: load

if (!require("pacman")) install.packages("pacman")
pacman::p_load(
  tidyverse,    # Easily Install and Load the 'Tidyverse'
  ggtext,       # Improved Text Rendering Support for 'ggplot2'
  showtext,     # Using Fonts More Easily in R Graphs
  scales,       # Scale Functions for Visualization
  glue          # Interpreted String Literals
) 

### |- figure size ---- 
camcorder::gg_record( 
  dir    = here::here("temp_plots"), 
  device = "png",
  width  = 8,
  height = 8,
  units  = "in",
  dpi    = 320)
```

2. Read in the Data

Show code

```{r}
#| label: read

market_share_raw <- readxl::read_excel(
  here::here("data/SWDchallenge/2025/Supplier Sourcing Data.xlsx"),
  sheet = "market_share",
  skip = 2, trim_ws = TRUE
) |>
  janitor::clean_names()

cost_over_time_raw <- readxl::read_excel(
  here::here("data/SWDchallenge/2025/Supplier Sourcing Data.xlsx"),
  sheet = "cost_over_time",
  skip = 2, trim_ws = TRUE
) |>
  janitor::clean_names()

spend_by_facility_raw <- readxl::read_excel(
  here::here("data/SWDchallenge/2025/Supplier Sourcing Data.xlsx"),
  sheet = "by_facility",
  skip = 2, trim_ws = TRUE
) |>
  janitor::clean_names()

evaluations_results_raw <- readxl::read_excel(
  here::here("data/SWDchallenge/2025/Supplier Sourcing Data.xlsx"),
  sheet = "results",
  skip = 2, trim_ws = TRUE
) |>
  janitor::clean_names()
```

3. Examine the Data

Show code

```{r}
#| label: examine
#| include: true
#| eval: true
#| results: 'hide'
#| warning: false

glimpse(market_share_raw)
glimpse(cost_over_time_raw)
glimpse(spend_by_facility_raw)
glimpse(evaluations_results_raw)
```

4. Tidy Data

Show code

```{r}
#| label: tidy

# 1. Clean market share data ----
market_share_clean <- market_share_raw |>
  filter(supplier != "Total Spend") |>
  mutate(
    industry_share = as.numeric(industry),
    us_share = as.numeric(us)
  ) |>
  select(supplier, industry_share, us_share)

# Extract spend information separately
total_spend <- tibble(
  category = c("Industry", "Us"),
  spend = c("$2.8M", "~$50M"),
  spend_numeric = c(2.8, 50)
)

# 2. Clean cost over time data ----
years <- c("2022", "2023", "2024", "2025", "2026", "2027", "2028")

# Clean the supplier cost data (rows 2-6)
supplier_costs <- cost_over_time_raw |>
  slice(2:6) |>
  rename(supplier = x1) |>
  mutate(
    `2025` = case_when(
      supplier == "Supplier A" ~ 163910,
      supplier == "Supplier B" ~ 1481647,
      supplier == "Supplier C" ~ 64041,
      supplier == "Supplier D" ~ 1137230,
      supplier == "Total" ~ 2846828,
      TRUE ~ NA_real_
    )
  ) |>
  rename(
    `2022` = actual,
    `2023` = x3,
    `2024` = x4,
    `2026` = forecast,
    `2027` = x7,
    `2028` = x8
  ) |>
  select(-x5) |>
  pivot_longer(cols = -supplier, names_to = "year", values_to = "cost") |>
  mutate(
    year = as.numeric(year),
    cost_millions = cost / 1000000,
    period = case_when(
      year <= 2025 ~ "Actual",
      year >= 2026 ~ "Forecast",
      TRUE ~ NA_character_
    )
  )

# Extract scenario comparison data
scenarios <- cost_over_time_raw |>
  slice(8:10) |>
  select(x5, forecast, x7, x8) |>
  rename(
    scenario = x5,
    `2026` = forecast,
    `2027` = x7,
    `2028` = x8
  ) |>
  # Clean scenario names
  mutate(
    scenario = case_when(
      str_detect(scenario, "Status Quo") ~ "Status Quo",
      str_detect(scenario, "Single") ~ "Single Supplier",
      str_detect(scenario, "Dual") ~ "Dual Supplier",
      TRUE ~ scenario
    )
  ) |>
  pivot_longer(cols = -scenario, names_to = "year", values_to = "cost") |>
  mutate(
    year = as.numeric(year),
    cost_millions = cost / 1000000,
    period = "Forecast"
  ) |>
  filter(!is.na(cost))


# Clean the spend by facility data ----
spend_by_facility_clean <- spend_by_facility_raw |>
  filter(facility != "Grand Total") |>
  pivot_longer(
    cols = starts_with("supplier_"),
    names_to = "supplier",
    values_to = "spend"
  ) |>
  mutate(
    supplier = str_to_upper(str_remove(supplier, "supplier_")),
    spend_thousands = spend / 1000
  )

# Extract totals separately
facility_totals <- spend_by_facility_raw |>
  filter(facility != "Grand Total") |>
  select(facility, grand_total) |>
  mutate(total_thousands = grand_total / 1000)

supplier_totals <- spend_by_facility_raw |>
  filter(facility == "Grand Total") |>
  select(-facility, -grand_total) |>
  pivot_longer(everything(), names_to = "supplier", values_to = "total_spend") |>
  mutate(
    supplier = str_to_upper(str_remove(supplier, "supplier_")),
    total_millions = total_spend / 1000000
  )

# Clean the evaluations data ----
evaluations_clean <- evaluations_results_raw |>
  slice(2:6) |>
  mutate(
    metric = str_extract(test_metric, "^\\d+\\. .+"),
    metric = str_remove(metric, "^\\d+\\. ")
  ) |>
  rename(
    supplier_a = suppliers,
    supplier_b = x3,
    supplier_c = x4,
    supplier_d = x5
  ) |>
  select(metric, supplier_a:supplier_d) |>
  mutate(across(supplier_a:supplier_d, as.numeric)) |>
  pivot_longer(
    cols = starts_with("supplier_"),
    names_to = "supplier",
    values_to = "score"
  ) |>
  mutate(supplier = str_to_upper(str_remove(supplier, "supplier_")))

# Extract averages separately
supplier_averages <- tribble(
  ~supplier, ~avg_score,
  "A", 3.64,
  "B", 4.51,
  "C", 3.72,
  "D", 4.42
)
```

5. Visualization Parameters

Show code

```{r}
#| label: params

# https://github.com/poncest/SWDchallenge/tree/main/2025/06_June
source("../../../../_CHALLENGES/SWDchallenge/2025/06_Jun/chart_1.R")
source("../../../../_CHALLENGES/SWDchallenge/2025/06_Jun/chart_2.R")
source("../../../../_CHALLENGES/SWDchallenge/2025/06_Jun/chart_3.R")
```

6. Plot

Show code

```{r}
#| label: plot

create_benchmark_chart()
create_supplier_performance_chart()
create_strategic_scenario_chart()
```

7. Session Info

Expand for Session Info

R version 4.4.1 (2024-06-14 ucrt)
Platform: x86_64-w64-mingw32/x64
Running under: Windows 11 x64 (build 22631)

Matrix products: default


locale:
[1] LC_COLLATE=English_United States.utf8 
[2] LC_CTYPE=English_United States.utf8   
[3] LC_MONETARY=English_United States.utf8
[4] LC_NUMERIC=C                          
[5] LC_TIME=English_United States.utf8    

time zone: America/New_York
tzcode source: internal

attached base packages:
[1] stats     graphics  grDevices datasets  utils     methods   base     

other attached packages:
 [1] here_1.0.1      glue_1.8.0      scales_1.3.0    showtext_0.9-7 
 [5] showtextdb_3.0  sysfonts_0.8.9  ggtext_0.1.2    lubridate_1.9.3
 [9] forcats_1.0.0   stringr_1.5.1   dplyr_1.1.4     purrr_1.0.2    
[13] readr_2.1.5     tidyr_1.3.1     tibble_3.2.1    ggplot2_3.5.1  
[17] tidyverse_2.0.0 pacman_0.5.1   

loaded via a namespace (and not attached):
 [1] gtable_0.3.6      xfun_0.49         htmlwidgets_1.6.4 tzdb_0.5.0       
 [5] vctrs_0.6.5       tools_4.4.0       generics_0.1.3    gifski_1.32.0-1  
 [9] fansi_1.0.6       pkgconfig_2.0.3   readxl_1.4.3      lifecycle_1.0.4  
[13] farver_2.1.2      compiler_4.4.0    textshaping_0.4.0 munsell_0.5.1    
[17] janitor_2.2.0     codetools_0.2-20  snakecase_0.11.1  htmltools_0.5.8.1
[21] yaml_2.3.10       pillar_1.9.0      camcorder_0.1.0   magick_2.8.5     
[25] tidyselect_1.2.1  digest_0.6.37     stringi_1.8.4     labeling_0.4.3   
[29] rsvg_2.6.1        rprojroot_2.0.4   fastmap_1.2.0     grid_4.4.0       
[33] colorspace_2.1-1  cli_3.6.4         magrittr_2.0.3    utf8_1.2.4       
[37] withr_3.0.2       timechange_0.3.0  rmarkdown_2.29    cellranger_1.1.0 
[41] ragg_1.3.3        hms_1.1.3         evaluate_1.0.1    knitr_1.49       
[45] rlang_1.1.6       gridtext_0.1.5    Rcpp_1.0.13-1     xml2_1.3.6       
[49] renv_1.0.3        svglite_2.1.3     rstudioapi_0.17.1 jsonlite_1.8.9   
[53] R6_2.5.1          systemfonts_1.1.0

9. GitHub Repository

Expand for GitHub Repo

The complete code for this analysis is available in swd_2025_06.qmd. For the full repository, click here.

10. References

Expand for References

Original Slides:

Document: XYZ Products: Strategic Sourcing Plan Document

Data:

Data: Source Data

--- title: "From 17x Industry Benchmark to Optimized Efficiency: A Data-Driven Supplier Strategy" subtitle: "Strategic Sourcing Analysis & Recommendations" description: "A strategic sourcing case study showcasing how to transform supplier performance data into compelling executive presentations. Uses SCQA framework and consistent color strategy to guide from $47M overspend problem to $1.3M savings solution." author: "Steven Ponce" date: "2025-06-02" categories: ["SWDchallenge", "2025"] tags: [ "storytelling-with-data", "business-intelligence", "strategic-sourcing", "procurement-analytics", "executive-presentation", "scqa-framework", "data-storytelling", "cost-optimization", "supplier-analysis","quadrant-analysis", "scenario-planning", "ggplot2", "business-strategy", "decision-support" ] image: "thumbnails/swd_2025_06.png" format: html: toc: true toc-depth: 5 code-link: true code-fold: true code-tools: true code-summary: "Show code" editor_options: chunk_output_type: inline execute: freeze: true cache: true error: false message: false warning: false eval: true --- ### Original Business Case > This month's Storytelling with Data exercise aims: Imagine that you work for a regional medical group that manages care facilities across your state. As part of a team responsible for reviewing medical products and evaluating suppliers, your role involves shaping company-wide strategies and policies across various medical centers. Recently, you and your team completed a strategic sourcing project assessing four suppliers (Suppliers A, B, C, and D) for a critical product category (XYZ Products). > > You have access to robust data, including historical usage and costs by medical center, satisfaction metrics from physicians and patients, and cost projections. The options on the table range from a single-supplier company-side contract to allowing each medical center to continue managing its own purchasing, each with clear trade-offs. > > You've put together a deck with your team to present the findings to the decision-makers. Your goal is to drive discussion and help the group reach a decision on future strategy. Below are the slides you've prepared. ![Original Slides](https://stwd-prod-static-back.s3.amazonaws.com/media/django-summernote/2025-05-29/3f6f1e40-d4fe-41b8-91b7-cb10e737397c.png){#fig-1} Additional information can be found [HERE](https://community.storytellingwithdata.com/challenges/jun-2025-transform-a-graph) ### Makeover Business Case ![Four-slide strategic sourcing presentation showcasing a transformation from a 17x industry benchmark overspend to \$1.3M in annual savings. **Slide 1** displays a bar chart comparing the current \$50M spend with the industry standard of \$2.8M. **Slide** 2 shows a quadrant analysis, identifying Supplier C as the optimal choice (green dot in the bottom-right quadrant, characterized by high performance and low cost). **Slide 3** presents three forecast scenarios through 2028, with a dual supplier strategy (green line) resulting in \$1.27M in savings compared to the status quo (red line). The **title slide** introduces the data-driven supplier strategy approach.](swd_2025_06.png){#fig-2} ### <mark> **Steps to Create these Graphic** </mark> Note: The charts were generated using R and ggplot. The slide deck was build using MS PowerPoint. #### 1. Load Packages & Setup ```{r} #| label: load if (!require("pacman")) install.packages("pacman") pacman::p_load( tidyverse, # Easily Install and Load the 'Tidyverse' ggtext, # Improved Text Rendering Support for 'ggplot2' showtext, # Using Fonts More Easily in R Graphs scales, # Scale Functions for Visualization glue # Interpreted String Literals ) ### |- figure size ---- camcorder::gg_record( dir = here::here("temp_plots"), device = "png", width = 8, height = 8, units = "in", dpi = 320) ``` #### 2. Read in the Data ```{r} #| label: read market_share_raw <- readxl::read_excel( here::here("data/SWDchallenge/2025/Supplier Sourcing Data.xlsx"), sheet = "market_share", skip = 2, trim_ws = TRUE ) |> janitor::clean_names() cost_over_time_raw <- readxl::read_excel( here::here("data/SWDchallenge/2025/Supplier Sourcing Data.xlsx"), sheet = "cost_over_time", skip = 2, trim_ws = TRUE ) |> janitor::clean_names() spend_by_facility_raw <- readxl::read_excel( here::here("data/SWDchallenge/2025/Supplier Sourcing Data.xlsx"), sheet = "by_facility", skip = 2, trim_ws = TRUE ) |> janitor::clean_names() evaluations_results_raw <- readxl::read_excel( here::here("data/SWDchallenge/2025/Supplier Sourcing Data.xlsx"), sheet = "results", skip = 2, trim_ws = TRUE ) |> janitor::clean_names() ``` #### 3. Examine the Data ```{r} #| label: examine #| include: true #| eval: true #| results: 'hide' #| warning: false glimpse(market_share_raw) glimpse(cost_over_time_raw) glimpse(spend_by_facility_raw) glimpse(evaluations_results_raw) ``` #### 4. Tidy Data ```{r} #| label: tidy # 1. Clean market share data ---- market_share_clean <- market_share_raw |> filter(supplier != "Total Spend") |> mutate( industry_share = as.numeric(industry), us_share = as.numeric(us) ) |> select(supplier, industry_share, us_share) # Extract spend information separately total_spend <- tibble( category = c("Industry", "Us"), spend = c("$2.8M", "~$50M"), spend_numeric = c(2.8, 50) ) # 2. Clean cost over time data ---- years <- c("2022", "2023", "2024", "2025", "2026", "2027", "2028") # Clean the supplier cost data (rows 2-6) supplier_costs <- cost_over_time_raw |> slice(2:6) |> rename(supplier = x1) |> mutate( `2025` = case_when( supplier == "Supplier A" ~ 163910, supplier == "Supplier B" ~ 1481647, supplier == "Supplier C" ~ 64041, supplier == "Supplier D" ~ 1137230, supplier == "Total" ~ 2846828, TRUE ~ NA_real_ ) ) |> rename( `2022` = actual, `2023` = x3, `2024` = x4, `2026` = forecast, `2027` = x7, `2028` = x8 ) |> select(-x5) |> pivot_longer(cols = -supplier, names_to = "year", values_to = "cost") |> mutate( year = as.numeric(year), cost_millions = cost / 1000000, period = case_when( year <= 2025 ~ "Actual", year >= 2026 ~ "Forecast", TRUE ~ NA_character_ ) ) # Extract scenario comparison data scenarios <- cost_over_time_raw |> slice(8:10) |> select(x5, forecast, x7, x8) |> rename( scenario = x5, `2026` = forecast, `2027` = x7, `2028` = x8 ) |> # Clean scenario names mutate( scenario = case_when( str_detect(scenario, "Status Quo") ~ "Status Quo", str_detect(scenario, "Single") ~ "Single Supplier", str_detect(scenario, "Dual") ~ "Dual Supplier", TRUE ~ scenario ) ) |> pivot_longer(cols = -scenario, names_to = "year", values_to = "cost") |> mutate( year = as.numeric(year), cost_millions = cost / 1000000, period = "Forecast" ) |> filter(!is.na(cost)) # Clean the spend by facility data ---- spend_by_facility_clean <- spend_by_facility_raw |> filter(facility != "Grand Total") |> pivot_longer( cols = starts_with("supplier_"), names_to = "supplier", values_to = "spend" ) |> mutate( supplier = str_to_upper(str_remove(supplier, "supplier_")), spend_thousands = spend / 1000 ) # Extract totals separately facility_totals <- spend_by_facility_raw |> filter(facility != "Grand Total") |> select(facility, grand_total) |> mutate(total_thousands = grand_total / 1000) supplier_totals <- spend_by_facility_raw |> filter(facility == "Grand Total") |> select(-facility, -grand_total) |> pivot_longer(everything(), names_to = "supplier", values_to = "total_spend") |> mutate( supplier = str_to_upper(str_remove(supplier, "supplier_")), total_millions = total_spend / 1000000 ) # Clean the evaluations data ---- evaluations_clean <- evaluations_results_raw |> slice(2:6) |> mutate( metric = str_extract(test_metric, "^\\d+\\. .+"), metric = str_remove(metric, "^\\d+\\. ") ) |> rename( supplier_a = suppliers, supplier_b = x3, supplier_c = x4, supplier_d = x5 ) |> select(metric, supplier_a:supplier_d) |> mutate(across(supplier_a:supplier_d, as.numeric)) |> pivot_longer( cols = starts_with("supplier_"), names_to = "supplier", values_to = "score" ) |> mutate(supplier = str_to_upper(str_remove(supplier, "supplier_"))) # Extract averages separately supplier_averages <- tribble( ~supplier, ~avg_score, "A", 3.64, "B", 4.51, "C", 3.72, "D", 4.42 ) ``` #### 5. Visualization Parameters ```{r} #| label: params # https://github.com/poncest/SWDchallenge/tree/main/2025/06_June source("../../../../_CHALLENGES/SWDchallenge/2025/06_Jun/chart_1.R") source("../../../../_CHALLENGES/SWDchallenge/2025/06_Jun/chart_2.R") source("../../../../_CHALLENGES/SWDchallenge/2025/06_Jun/chart_3.R") ``` #### 6. Plot ```{r} #| label: plot create_benchmark_chart() create_supplier_performance_chart() create_strategic_scenario_chart() ``` #### 7. Session Info ::: {.callout-tip collapse="true"} ##### Expand for Session Info ```{r, echo = FALSE} #| eval: true #| warning: false sessionInfo() ``` ::: #### 9. GitHub Repository ::: {.callout-tip collapse="true"} ##### Expand for GitHub Repo The complete code for this analysis is available in [`swd_2025_06.qmd`](https://github.com/poncest/personal-website/tree/master/data_visualizations/SWD%20Challenge/2025/swd_2025_06.qmd). For the full repository, [click here](https://github.com/poncest/personal-website/). ::: #### 10. References ::: {.callout-tip collapse="true"} ##### Expand for References Original Slides: - Document: [XYZ Products: Strategic Sourcing Plan Document](https://docs.google.com/presentation/d/1zqxsqSE9hfAGQorzDLyVsBU3gltY4Cz1/edit?slide=id.p1#slide=id.p1) Data: - Data: [Source Data](https://docs.google.com/spreadsheets/d/12YGQSg6C50wE-QI8L7F9Ghpeu-sNXH4U/edit?gid=2041126443#gid=2041126443) :::