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Procurement & VendorsGenerated accuracy model review: 2026-05-06
Vendor Consolidation Savings Calculator accuracy and testing
This page documents how Calwarden builds trust for this calculator: source notes, regression-style default tests, limitations, assumptions, unit handling, rounding, and visible change history.
Formula source
- Vendors removed = max(current vendors - target vendors, 0). Annual savings = total annual spend * negotiated discount percent + vendors removed * admin cost per vendor. Net savings = annual savings * analysis years - transition cost.
Test cases
Default input regression check
Generated from the checked-in default inputs and calculate function.
Inputs
- Total Annual Spend: $600,000
- Current Vendor Count: 12 vendors
- Target Vendor Count: 5 vendors
- Negotiated Discount: 6%
- Admin Cost per Vendor: 1,500 $/year
- Transition Cost: $25,000
- Analysis Period: 3 years
Expected outputs
- Net Consolidation Savings: $114,500.00
- Annual Savings: $46,500.00
- Annual Discount Savings: $36,000.00
- Annual Admin Savings: $10,500.00
Known limitations
- This page documents the checked-in calculator logic and does not certify results for every real-world edge case.
- Use the result as a planning estimate unless the calculator page states a stricter purpose.
Assumptions
- All prices, discounts, costs, volumes, terms, and rates are user-entered assumptions.
- Calculations are deterministic and run locally in the browser without uploading procurement data.
- Results are planning estimates and do not replace legal, accounting, tax, security, operational, or procurement review.
Unit handling
- Total Annual Spend accepts values in $.
- Current Vendor Count accepts values in vendors.
- Target Vendor Count accepts values in vendors.
- Negotiated Discount accepts values in %.
- Admin Cost per Vendor accepts values in $/year.
- Transition Cost accepts values in $.
- Analysis Period accepts values in years.
- Net Consolidation Savings is displayed as currency.
- Annual Savings is displayed as currency.
- Annual Discount Savings is displayed as currency.
- Annual Admin Savings is displayed as currency.
Rounding rules
- Number displays use up to 2 decimal places in the calculator UI.
- Currency outputs are displayed with standard US dollar formatting.
- Input precision follows configured step values where provided.
Version history
1.0.0 - 2026-05-06
Generated accuracy and testing page from the current vendor-consolidation-savings-calculator calculator definition.
Change log
2026-05-06
Published default regression test documentation and metadata fallbacks for Vendor Consolidation Savings Calculator.
Calculator transparency
Accuracy pages are generated from checked-in calculator definitions and can be upgraded with curated review metadata over time.