Measures the ability to secure better contract terms by consolidating spend and negotiating volume-based discounts.

What it Measures ?

How well we use contract terms to get more value from what we buy.

Relevant StakeHolders 

Contract Managers, Strategic Sourcing Teams

In-depth Use Case / Real-world Example

In a manufacturing company producing automotive parts, Contract Value Leverage tracks how effectively the procurement team negotiates favorable terms by consolidating orders across multiple departments. For example, by pooling annual demand for steel, the company secures a 10% volume discount from the supplier. This KPI reflects how much the procurement team can leverage total spend to drive savings and more favorable contract conditions.