A SIG Buy-side Member from the High-Tech Industry would like to benchmark with all community Members on their indirect spend, specifically what your average ratio is for cost savings in hard dollars vs cost avoidance. For example, this Member currently enjoys a 2:1 ratio between their hard dollar savings and the savings they accrue by reducing or avoiding spend.
Will you kindly post with the items below? When you do so, please bear in mind that in this scenario, "cost avoidance" refers to reducing foreseeable costs (and reducing the rate of cost increases), while "cost savings" are savings that are reflected in the company's financial statements and budget.
1. Your industry
2. Your ratio of cost savings versus cost avoidance
3. Your average spend under management (in USD) – optional and used for comparative purposes only