Savings and Value

Like it or not, the success of procurement in many organisations is still measured in terms of savings. Increasingly, however, procurement is being viewed as a means of creating value from the supply base. Using our value levers tool we can help you identify sources of value and then go on to work with you to help capture this value through a variety of initiatives.

It is vital to measure and report procurement success, and we can help you build a performance management framework that suits your organisation. We will help you capture the results of each value creation initiative in a database that will also enable you to generate savings forecasts and set up appropriate reports.

Performance management presents some real issues and key to its success is:

  • Full involvement of stakeholders in the entire performance management process
  • Careful definition of how measurement will be made – the rules
  • Tracking of volumes, not just relying on volume-forecasts
  • Three-way sign-off by procurement team, budget-holder and finance
  • Audit approach to enforcing the rules