Cost Avoidance in procurement is when organizations or businesses make proactive decisions to help limit costs before they occur. That way, financial resources are preserved by potential cost savings. It’s a simple concept: identify ways to reduce spending long before any kind of transaction takes place. And it goes beyond small voluntary acts – Cost Avoidance strategies can range from large-scale preventative initiatives to creative solutions that don’t require additional expenditure. This practice might even bring additional rewards of improving processes, increasing efficiency, and enhancing customer service. In summary, Cost Avoidance in procurement is an important factor in helping businesses reach their economic goals while promoting sustainability.