Welcome back! If you just joined us, I’ve been sharing common savings interpretations within the organization (Part 1) and the challenges of procurement pros to reach savings consistency. In Part 2, I discussed the first and second step to reaching savings consistency within the organization. Today, I’ll finish the series by sharing the final step.
Step 3 – Driving for Savings recognition
Once definitions are aligned through the use of both process and automation, procurement organizations can achieve a more consistent approach to driving savings recognition to the rest of the organization by:
- Using more conservative approaches to savings for establishing credibility (especially soft savings) due to the lack of impact on income statement
- Establishing a process of savings governance and repeatability with procurement systems and tools that prevents a misinterpretation of what is meant by savings
- Establishing increased delivery and awareness savings recognition through the use of increased savings reporting tools and the use executive-level dashboards
Is improving savings visibility top of mind for you and your team? If so, I would highly recommend joining me (and Iasta CEO David Bush) at ProcureCon Indirect West on September 23-25 in Phoenix, Arizona. We will be discussing the topic of cost savings in more detail.