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Methodology of procurement savings calculation
- Ready-to-Use methodology
- Synthesis of the best world experience and authoring
- A lot of practical examples
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Methodology of procurement savings calculation
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Description
The main purpose of this methodology is to describe the methods for measuring Procurement Savings, which cause absolute trust within the company, increase the level of cross-functional interaction between teams, enhance motivation and determine the impact of Procurement to the Company Results.
As a result:
- Cost reduction
- Focus on real results
- Ability to measure and manage identified, contracted and realized savings
- Existence of accurate data on savings without errors and subjective estimates
- A good understanding by buyers of historical baselines helps more clearly set and achieve the goal of saving
- Understanding the contribution of Procurement to the overall financial performance of the company
- Growth of professional credibility loan to procurement teams
- Motivation of Procurement Teams
What is unique:
- The methodology is based on many years of practical experience
- Approved on more than hundred large procurement projects
- Analysis of all existing approaches in the world
- The basis is the most balanced methods, corresponding to the procurement with high maturity level
- We applied our own authorial approaches:
- explanations of direct (DEF) and indirect economic factors (IEF) affecting the base price level
- measuring of savings with a variation in consumption perimeter
- two measuring methods of working capital requirement (WCR)
- separation of controlled and uncontrolled causes of cost variation
- measuring the impact of direct and indirect procurement on company results
- All approaches used are motivated, confirmed by practice and a host of examples, and also take into account the possibility of automation
For you:
- CPOs and their Teams
- Other employees procuring materials and services
- Financial controllers
- CFOs
- Accountants
- CEOs
Included in the price:
Technical specifications:
Addition (for patrons):
Options
Comparison with your methodology
If your company has already adopted a methodology for calculating procurement savings, we'll compare the methods in a professional dialogue mode.
Adaptation for the company
We can adapt the methodology to your specific tasks, your master-data structure and your examples.
At any language
Basic versions of the document are presented at Russian and English. We can prepare for you this methodology at any language of the world!
Training
We will support the development of procurement teams’ skills and are conducting training "from the authors of the methodology" for both buyers and business analysts and financiers. One-day training is possible only according to the methodology of procurement savings calculation.
Outsourcing Savings Calculation
In order not to distract the resources of buyers from the main tasks, we offer the outsourcing service for calculating procurement savings. And for large companies there is an absolutely innovative solution from our partner based on artificial intelligence, which allows you to combine procurement data with a dozen different ERPs and service systems into a single tool.
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