Spend Benchmarking

A comprehensive spend and risk analysis with negotiating advice at your part number level.

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Can I benchmark custom products?

Lytica currently benchmarks standard electronic components and does not support custom products such as plastics, metalwork, or bare printed circuit boards. We are developing a modelling capability that would use customer-provided design pa…

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Does Lytica Adjust for Distributor Markups?

No. Lytica benchmarks the purchase prices you provide, including any distributor or manufacturing partner markups. If you source entirely through distribution, the results reflect the competitiveness of those prices. The analysis still iden…

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How Does Volume Affect Lytica’s Negotiation Pricing?

Volume is one factor in pricing, but buying more of a component does not automatically mean paying less. Lytica’s negotiation targets reflect your demonstrated purchasing competitiveness, rather than relying on volume alone. Estimated annua…

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Is there any guarantee that I will get the savings?

Lytica identifies potential savings, but we cannot guarantee the prices or savings you will achieve. Actual results depend on factors such as purchasing channel, geography, volume, and negotiation leverage. We equip your team with price tar…

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What Do On-AVL and Off-AVL Mean?

An Approved Vendor List (AVL) identifies the suppliers and components approved for use in your organization’s products. On-AVL: Components already on your AVL and approved for use. Off-AVL: Alternative components that are not on your AVL bu…

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What does independent benchmarking mean?

Independent benchmarking provides an objective assessment of your purchasing prices without supplier influence. Lytica is free of supplier relationships that could compromise our analysis or recommendations. We receive no compensation or co…

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What is Arbitrage Savings?

Arbitrage savings are potential cost reductions identified when different approved manufacturer part numbers (MPNs) under the same client part number (CPN) have different prices. Shifting purchases toward the lowest-priced approved option c…

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What is Duplication Savings?

Duplication savings are potential cost reductions identified when the same manufacturer part number (MPN) is assigned to multiple client part numbers (CPNs) with different purchase prices. This coding duplication can occur through error, in…

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What is Manufacturer Ranking?

Manufacturer Ranking shows how competitively your organization purchases components from different manufacturers. By comparing your pricing performance with market peers, Lytica helps you identify manufacturers where you achieve strong pric…

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What is Negotation Savings?

Negotiation savings are potential cost reductions identified when your component prices are higher than Lytica would expect based on your demonstrated purchasing competitiveness. Lytica highlights out-of-line pricing, provides target prices…

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What is Single Source risk?

Single-source risk arises when a component has only one approved manufacturer or source on your AVL. If that source experiences shortages, production issues, or discontinuation, you may have no approved alternative readily available. Identi…

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What is Spend Competitiveness?

Spend competitiveness measures how favorably your component purchase prices compare with those paid by market peers, taking into account how much you spend on each component. This gives higher-spend components greater influence on the overa…

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What is the CPN list?

The CPN List brings together your component data by Client Part Number (CPN), showing associated manufacturer part numbers (MPNs), manufacturers, commodities, annual usage, and total spend. It also displays pricing benchmarks and potential…

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