In an analysis of over $1.5 trillion in spend data for hundreds of diverse companies, a troubling data point for procurement leaders has been identified: on average, organizations are only achieving 50-60% of their projected savings. We often hear that a CFO’s biggest complaint about their procurement group is, that they “tout big savings but it doesn’t show up in the P&L.” We all know that there are many reasons for this, but our observations in the data suggest that – in some cases – their concerns are legitimate. This session, aimed at CPOs responsible for both projected and realized savings, will outline the steps to stop the savings leakage by implementing robust savings tracking and category management before launching any strategic sourcing project.

• The causes of savings leakage within most organizations
• Strategies for solving savings leakage
• How to become more aligned with CFO expectations

 

Contributors: Insight Sourcing Group
Categories: 2018 Spring - Washington DC, Summit Presentations
SRC Type: Realization, Sourcing