The Actionable Guide to Procurement Cost Savings (2024 Edition)

Procurement and Finance: an alliance that starts with demonstrating your full value.

When it comes to cost savings, Finance's love language is referred to as "hard savings" or savings that are measured through bottom-line reductions. But:

• Where’s the recognition for the cost increase you avoided with improved operational efficiencies you achieved? 
• How about other efficiencies you’ve achieved that get more bang for your buck based on skilled negotiations and rescoping? 
• What about procurement-driven savings, including vendor retention, training and dispute elimination, that don’t have an established baseline today but will at a later date?

These are referred to as "soft savings" - Finance's foreign language - savings that don't show up on the balance sheet, yet hold massive potential.

So, what’s the solution? It’s communication. Procurement professionals must demonstrate the total scope of cost savings they achieve beyond black-and-white cost reduction.

This guide is our intent to help you start a love story with your finance team by empowering you to achieve collaboration, recognition and ultimately, alignment, with you taking that first step.