How to calculate procurement savings?

When it comes to procurement, one of the main goals is to save money. But how do you know if you’re actually achieving cost savings? Here’s a guide on how to calculate cost savings in procurement.

First, you need to identify the baseline cost. This is the cost of goods or services before any changes are made. Next, you need to identify the target cost. This is the cost that you’re aiming to achieve through procurement savings. Finally, you need to calculate the difference between the baseline cost and target cost. This will give you your total potential savings.

To get a more accurate picture of your procurement savings, you can also track other factors such as quality and delivery time. By tracking these factors, you can ensure that your procurement savings are not coming at the expense of quality or service levels.

Try oboloo's Procurement Software Free For 30 Days

No credit card required. No contracts to cancel. No set up fees. No hidden costs. No downloads

meeting-vector-new.svg
Oboloo transparent

The smarter way to have full visibility & control of your suppliers

Contact

Feel free to contact us here. Our support team will get back to you as soon as possible

Oboloo transparent

The smarter way to have full visibility & control of your suppliers

Menu

Contact

Feel free to contact us here. Our support team will get back to you as soon as possible

© 2022 oboloo Limited. All rights reserved. Republication or redistribution of oboloo content, including by framing or similar means, is prohibited without the prior written consent of oboloo Limited. oboloo, Be Supplier Smart and the oboloo logo are registered trademarks of oboloo Limited and its affiliated companies. Trademark numbers: UK00003466421 & UK00003575938 Company Number 12420854. ICO Reference Number: ZA764971

Skip to toolbar