Tool: List of Savings Definitions with Examples

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Tool: List of Savings Definitions with Examples

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This tool contains the following content for your use. 

 

Definitions for Savings, including how to calculate for:

  • Existing supplier decrease
  • New supplier decrease
  • Product/Service Elimination
  • Demand Management

Definitions for Cost Avoidance, including how to calculate for

  • Rate reduction
  • Renewal decrease

Document also includes

  • definitions for baseline, savings, carryover/avoidance
  • methodologies for capital savings, volume, mid-year savings initiatives, and non-chargeable savings
  • suggestions for dealing with rebates, negative savings, and operational decisions

Examples are included for the most common situations.

 

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