Have you ever heard of a procurement savings tracker?
You may have heard of it if you are actively looking for ways to track your procurement savings.
With that said, if you haven’t, it’s certainly time to familiarize yourself with this technology, and here’s why.
Cost-Savings is a Top Priority for Most CPOs
According to Deloitte, how to reduce costs is the second-highest priority for most chief procurement officers (CPOs) this year.
CPOs are obsessed with cost savings and for nine consecutive years of Deloitte’s annual Global Chief Procurement Officer Survey, the top priority has always been this.
Owing to the disruption heralded by COVID-19, in 2021 CPOs shifted their attention from cost to improving operational efficiency. However, what’s clear to see is that savings remain a very big deal in the world of procurement.
So, how exactly do CPOs measure savings and what software do they use?
Enter procurement savings tracker.
What is a Procurement Savings Tracker?
A procurement savings tracker is software that allows organizations to monitor relevant savings achieved through strategic sourcing and various other cost-saving measures initiated by the procurement team when sourcing in the supply chain.
These digital solutions are becoming increasingly popular because of the benefits that they promise.
So, now that we know what a procurement savings tracker is, what are some of its advantages? Let’s take a look at five of them.
Advantages of Procurement Savings Tracking Software
A procurement savings tracker is one of the more practical and most important financial solutions for procurement teams today allowing organizations to not only gain real-time insights but also plan for future procurement campaigns. Here are some of its advantages:
Advantage 1: Plug leaks faster
Management guru Peter Drucker often said, “You can’t improve what you don’t manage.” If you have any hopes of getting better at realizing cost savings, it’s imperative to have procurement savings tracking software.
If you’re not sure where the leaks are in your procurement spend how can you plug them? With dedicated software that can chart trends and highlight anomalies, find, review, and rectify savings problem areas.
Advantage 2: Track projects seamlessly
Procurement teams generally have numerous sourcing and procurement campaigns running concurrently. It’s near impossible to keep track of costs using spreadsheets alone.
With procurement savings tracking software, on the other hand, tracking becomes a streamlined affair. You’ll be better positioned to track any and all cost-saving endeavors in one centralized platform.
Advantage 3: Customize sourcing efforts
Have you ever wished you could discreetly implement cost-reduction policies? With matters of finance, we understand the need for discretion. Using Procure Port’s procurement solutions, calibrate and scope out savings targets in real-time. And speaking of real-time…
Advantage 4: Real-time visibility
Gone are the days of having to wait for the finance department to publish reports before you could get a sense of the savings achieved by the procurement team. Thanks to procurement savings tracking software, receive e-reports anywhere, anytime.
With real-time visibility, procurement tracking software enables you to track, manage, and view savings as they happen.
Advantage 5: Share and review data with stakeholders
Impress stakeholders and internal management with proof of negotiated savings and overall realized savings. Demonstrate milestones set and achieved. Have actual results and metrics to use when making decisions that improve your procurement strategies.
Conclusion
For teams serious about cost savings, a procurement savings tracker is non-negotiable.
Not only does it provide you with real-time overviews of achieved savings, but it also makes it possible to craft savings initiatives that enable you to achieve savings across all your procurement campaigns.
Use it to plan how you can get the best possible return on procurement spend.
If you’re a sourcing specialist, then one of the roles of a sourcing specialist on a procurement team should be finding the best and most reliable procurement software.
Thankfully you don’t have to look far. ProcurePort is a trusted procurement solutions provider whose clients include UNOPS, HUD.GOV, and conEdison.
To discuss procurement software with a consultant or to schedule a demo of our solutions, contact us today.