Contract Renewal & Leverage Window Planner – Excel XLSX

BENEFITS OF THIS DOWNLOADABLE EXCEL DOCUMENT

1. Calculate, for every contract you hold, the date after which you no longer have a negotiation - only a renewal on their terms.
2. Flag every contract as Act now, Prepare, Monitor or Locked in, recalculated against today's date every time the file is opened.
3. Report the annual value already locked in: the single most useful number for making the case that renewals have to start earlier.

PROCUREMENT STRATEGY EXCEL DESCRIPTION

Contract Renewal & Leverage Window Planner is an Excel template (XLSX) available for immediate download upon purchase.

Leverage does not expire at the contract end date. It expires at the
notice deadline, minus the time you would need to qualify an alternative,
minus the time your own organisation takes to approve one.

Before that date you have a choice. After it you have a renewal, and the
supplier understands the difference even when the buyer does not.

WHAT IT DOES

A forty-row contract register. Enter the supplier, category, internal
owner, annual value, contract end date, notice period in days, whether the
contract auto-renews, the realistic switching lead time in weeks and your
internal approval lead time in weeks.

The model returns the notice deadline, calculated from the end date and
the notice period, which is where most organisations stop. Then it returns
the date that actually matters: the leverage start date, which is the
notice deadline minus the weeks required to qualify an alternative and to
obtain internal approval.

Every contract is then flagged Act now, Prepare, Monitor or Locked in,
with colour coding, and the days remaining are counted. Everything
recalculates against today's date, so opening the file is the review. Four
worked examples are supplied, dated so that all four statuses appear and
the logic is visible immediately.

THE NUMBER TO TAKE TO A STEERING GROUP

The summary sheet totals the number of contracts and the annual value
sitting in each status, and calculates the share of your total contracted
value that is already locked in – value that will be renewed rather than
negotiated this year, because the window closed while nobody was watching.

In most organisations running this exercise for the first time, that
figure sits somewhere between a quarter and a half. Almost nobody knows it
before they measure it. Reporting it quarterly converts an abstract
argument about starting renewal work earlier into a number with a currency
symbol in front of it, which is a conversation that tends to go
differently.

THE FIELD PEOPLE GET WRONG

The switching lead time. Ask somebody who has actually run that tender
rather than reading the category plan, and add the internal approval time
as a separate figure, because it is routinely longer than the sourcing
itself and just as routinely forgotten. For contracts marked auto-renew,
put the notice deadline in a shared calendar as well: an auto-renewal that
passes unnoticed is the most expensive administrative failure in
procurement. WHO THIS IS FOR

Category managers and procurement leads who negotiate commercial terms and
have to defend the outcome to a finance function. Consultants who need a
defensible model in the first week of an engagement. Finance business
partners who validate what procurement claims. It assumes professional
judgement and supplies the arithmetic, not the other way round.

HOW THE FILE IS BUILT

One Excel workbook, self-contained. A read me sheet stating what the model
does, how to use it and what it is not. The working sheets, with a worked
example filled in throughout and designed to be overwritten. A licence
sheet.

Every cell is unlocked. Every formula is visible and editable. Nothing is
password-protected, because a model a professional cannot adapt into their
own situation is worth nothing. The colour convention is consistent across
the whole catalogue: a yellow fill with blue text is an input you supply,
black text is a formula, green text is a reference to another sheet.

WHAT IS DELIBERATELY NOT IN IT

No benchmarks. No market prices, no index forecasts, no industry margin
ranges, no assumed cost of capital held as a constant. Every field of that
kind is an input, left empty or left as an example, and labelled as an
input. A fabricated benchmark is worse than no benchmark, because a
fabricated number gets reported and then defended.

This is educational and commercial material. It is not legal, tax,
financial or accounting advice and it creates no professional
relationship. Where the subject touches contract wording, classification
or regulation, the file says plainly where your own adviser has to take
over.

LICENCE

Use inside one organisation by up to ten named users, with unlimited
internal adaptation. No resale, redistribution or use as the basis of a
training or consultancy product supplied to third parties. The author
terms inside the file prevail over any more permissive default marketplace
terms.

Source: Best Practices in Procurement Strategy, Contract Excel: Contract Renewal & Leverage Window Planner Excel (XLSX) Spreadsheet, Davide Sferrazza