Key reasons to invest in procurement savings tracking software
[Hint: think... quantity, quality and longevity]
Between 5% and 50% higher savings in first year
75% of our customers see an increase in savings after using the tool, with the average increase being in the 18-24% range (the other 25% probably see a reduction due to less spurious savings claims). Our average customer is saving £26m per year so that’s £4.6 - £6.2m benefit after the first year.
There are so many factors affecting savings it is speculative to describe exactly how and why using the tool results in such improved procurement savings performance, but across 40 clients (* in the sample) it seems like a big result that shows a very clear trend. It makes for a powerful business case with a high ROI even on the most modest savings target and spend addressed.
Trust in your savings
CPO reports the savings, while the CFO shoots them down, and the spreadsheet is called into question - sound familiar?
Procurement savings must be real, transparent and agreed between stakeholders. No project will turn out in the end as per the ‘idea’ at the start so it is important you can track change and validate along the way.
Using Provalido, procurement teams can work collaboratively through the savings lifecycle. Validate savings assumptions and figures along the way using workflow and approvals. Maintain transparency with version history and change management. And complete successful savings projects with full understanding and buy-in across procurement, finance and other stakeholders.
Cut out the debate and the smoke-and-mirrors in reporting, and work together on delivering true real procurement savings.
A process for saving
A procurement savings programme should not be a one-off windfall to appease your CEO! It is the modus operandi of a professional procurement function
The Provalido system implements and supports a simple, standard business process and approach to ongoing saving initiatives as part of your procurement team’s business-as-usual activity.
With a distributed procurement team, able to access the Provalido system anytime and from anywhere it is easy to maintain projects, update statuses and tasks, refine savings forecasts and view live procurement performance graphs. The savings system can be used live to run weekly and monthly meeting and the transparency of data (some client say) gamifies saving within the procurement team.
The end result? Cost reduction becomes an ongoing and embedded business process.
Need more benefits of our savings manager
We asked some customers to say just one thing about using Provalido for managing their savings and cost reduction programmes.
Here's what they said...
Excel tracker was a pain
Reports are really flexible
Everyone can use it at the same time
Rolled out to all our country teams
Up and running in less than a week
I can learn from colleagues by looking at their projects
No longer dependent on the person who ran the old Excel tracker
It is designed to do what we do - save!
Great to be able to prove my savings with evidence
Project templates save you having to think every time
Because its easy, it gets done
So many more people get involved in cost reduction now
We run our monthly team meeting from the Provalido dashboard
It drives what we do now rather than just recording what did