Measuring Cost Savings

Every supply management organization tracks cost savings, but not all define it the same way. While every team surveyed measures price reductions, fewer include cost avoidance or negotiated savings against prior spend. Many CFOs and executives discount cost avoidance as “soft savings,” creating a disconnect between procurement’s reported value and what the C-suite recognizes. How aligned are your savings metrics with your leadership’s definition of value? Members can access Quick Poll Report - Tracking Cost Savings in ERP Systems in the CAPS Library to see the full report.

ESG-driven regulations are reshaping how supply management teams operate, from compliance expectations to supplier performance and availability. CAPS Research is launching a new study to understand how organizations are navigating these shifts. If ESG regulations are impacting your supply base, cost structure, or sourcing strategy, we want to hear from you. Opt in HERE to take the survey and receive a copy of the report.