Guides to measuring and validating procurement savings

Short, sourced articles on the method behind procurement savings recognition.

The full method

The reference page: locked baseline, hard vs avoidance, in-year vs run-rate, FX, finance validation.

6 min read

Six steps from a negotiation to a savings figure finance accepts, with the worked example of a three-buyer team.

4 min read

A free Excel file to track initiatives and savings, with in-year impact and run-rate calculated. Its columns are those of the tool's import.

5 min read

A saving only means something relative to a baseline. If that baseline can move after the fact, the final number means nothing.

5 min read

As long as procurement both reports and measures its own savings, the number stays contestable. Finance validation removes the doubt.

5 min read

A hard saving reduces real spend. Cost avoidance prevents an increase. Mixing them strips your reporting of all credibility.

5 min read

A saving landed mid-year does not deliver a full year of impact in year one. Confusing run-rate with in-year impact misleads the budget.