Procurement Roi, otherwise known as Return on Investment, is a business metric that can be used to measure the efficiency and success of a company’s procurement and sourcing operations. It is a measure of the overall financial performance of a company’s procurement and sourcing operations in relation to the resources and money invested in them. It enables a company to determine if their procurement processes are returning value or if they are simply wasting money. Procurement Roi is calculated by taking the total value of savings generated by procurement and sourcing operations and dividing it by the total cost of those operations. The resulting number is then expressed in terms of a percentage return on investment. By calculating and tracking Procurement Roi, companies are able to identify areas for improvement within their procurement and sourcing processes, enabling them to more effectively manage their resources and maximize their return on investment.