Procurement Savings – Learn How to Produce Credible Data with our Webinar on April 16th

We admit to having very mixed feelings about the whole issue of “procurement savings.”

Too much of a focus on savings as the prime - indeed, for many organisations, the only way in which procurement is measured, is clearly not sensible or appropriate. If you are buying Marketing or Professional Services, “savings” really aren’t as relevant as the value you can extract from the organisation’s spend.

However, there is no doubt that for many spend categories and therefore many organisations, savings do matter. If you are buying manufacturing components or raw materials, it is likely that your challenge is to maintain quality whilst driving down the total cost. Even in some services areas – we might consider Energy, Logistics or Fleet Management - then cost is likely to be the main driver, and savings will be an important and meaningful measure.

Given this required focus, it is remarkable that the procurement profession has been so bad for so long in terms of being able to really measure, verify, communicate and capture those savings. In most organisations, procurement claim a savings figure that would not stand up to even basic auditing. And the result of that? Finance functions and the Board pretty much ignore what procurement says, and credibility is lost – or at best,we miss the chance to gain credibility.

Some organisations are progressing on this front however. So we’re pleased to announce a Spend Matters hosted webinar with Sievo on April 16th at 2pm UK time, 3pm CET (and 9am east coast US) titled “Indisputable Savings.” You can register here now, free of charge.

It features me (Peter Smith) talking about the key issues concerning savings measurement, and then a real-life case study from Grundfos, a global leader in advanced pump solutions and a trendsetter in water technology. Klavs Hornum, Group VP, Group Purchase at Grundfos and Stinne Ulriksen, Business Development Manager, Sourcing Excellence at the firm will talk about how they have implemented Sievo’s tools to execute savings projects and track realised savings. Finally, Johan-Peter Teppala, VP Operations at Sievo, will complete the line-up.

The Grundfos story gives you the chance to hear what more accurate and credible savings analysis has done for that procurement function. It should be well worth an hour of your time – and you can still download our SNCF case study here, explaining how that organisation achieved a similar procurement credibility boost.

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