Indisputable Procurement Savings – Sign Up for Our Webinar Now

Here are just a few ways in which you can lie about procurement savings.

  • Simply do not include any categories or deals that go against you. If you made a wrong guess on the way the energy market was going, and locked in at the wrong price, just don’t include any reporting on that spend area. Let's face it, why would you report a "loss" in a "savings" report?
  • But claim the benefit for any market or currency movements that have gone your way. Oil prices halved? Huge savings, all accredited to the procurement function’s brilliant negotiations (never mind that you only got a 5% price reduction when it should have been nearer 50%)!
  • If the unit price went up but you bought less volume of an item, claim a “demand reduction” saving.
  • If the unit price went down, but you bought twice as much, claim a “price reduction” saving on the entire volume.

And there are more of course. Look, we know that most procurement functions lie about their savings. But the problem is, as CFOs and CEOs get more savvy about procurement, they are catching on to this. They may go along with it so they can tell their shareholders or other stakeholders (Ministers, Councillors...) about the amazing “savings” the organisation is making , but they probably don’t believe you in reality. And so the credibility of the CPO, the procurement function, and the individuals in it, all take a knock. Or at best, do not improve.

That’s why we have been fascinated by Sievo’s software since we first discovered it four years ago, and saw a convincing tool, that could really get as close as is possible to identifying savings and the drivers behind cost movements. And that’s why we are looking forward to a webinar which I’m chairing 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.

As well as my thoughts on the key issues, we will have a real-life case study from Grundfos, a global leader in advanced pump solutions and a trendsetter in water technology. Klavs Hornum and Stinne Ulriksen from 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.

This is a key topic for every procurement function, so I do hope you will join us - and you can still download our SNCF case study here, explaining how that organisation achieved a similar procurement credibility boost.

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