Measures the savings generated through strategic sourcing initiatives, such as supplier negotiation and process optimization.

What it Measures ?

Tracks money saved through smarter supplier negotiations.

Relevant StakeHolders 

Procurement Head, Strategic Sourcing Manager

In-depth Use Case / Real-world Example

A company manufacturing electronics calculates Cost Savings through Strategic Sourcing by comparing the cost of goods before and after renegotiating contracts with suppliers or sourcing from more cost-effective suppliers. For example, if the company saves ₹10 crore annually after a strategic sourcing initiative, this KPI helps quantify the value of procurement optimization.