Production Schedule Adherence

Measures the accuracy of savings predictions versus actual savings achieved through procurement activities.

What it Measures ?

Compares predicted vs real cost savings.

Relevant StakeHolders 

Financial Planners, Budget Teams

Why it Matters ?

Improves planning accuracy for cost-saving measures.

In-depth Use Case / Real-world Example

A manufacturing company that produces pumps calculates the Savings Accuracy Index by comparing the predicted savings (based on supplier negotiations, bulk discounts, etc.) to the actual savings realized at the end of the year. For example, if procurement estimated ₹20 lakh in savings but only realized ₹18 lakh, the savings accuracy would be 90%. This KPI helps assess how well the procurement team forecasts and delivers on cost-saving targets.