Measures the total cost savings achieved through procurement strategies such as negotiation, strategic sourcing, and supplier consolidation.

What it Measures ?

How close we are to hitting our cost-saving targets.

Relevant StakeHolders 

CFOs, Procurement Heads

In-depth Use Case / Real-world Example

A manufacturing company producing industrial machinery calculates Procurement Savings Achievement by tracking how much it has saved through better procurement strategies. For example, if the company negotiated a 10% discount on steel, saving ₹5 lakh annually, and reduced logistics costs by ₹3 lakh through smarter shipping strategies, the total procurement savings would be ₹8 lakh. This KPI helps assess how effectively procurement is contributing to cost reduction.