Benchmarking: Procurement Savings Impacting Business Budgets

We are looking to see if any Procurement organizations are having cost reductions impact business budgets. Either by i) Procurement involved in setting budgets; or ii) Procurement used to reduce Business budgets post sourcing initiative, and having dollars flow back to corporate finance to be reprioritized.

Traditionally we have tracked Procurement savings as variation in cost from initial quote or average bid cost to final negotiated cost, but these reductions, while benefiting the business, did not result in a true sweep of the budget.

This year we are only calculating budget reducing savings and are looking to see if anyone else is doing the same. If you are [doing the same, can you please respond and indicate]:

1) What challenges did you run into your first year? 
2) What will you differently next year? 
3) Would you be willing to have a working session to discuss lessons learned?

Remember, if you prefer to discuss one-on-one, please reply to this email and Mary from SIG will gladly make the introductions.

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