Published: 23 June 2017
Analyst(s): Procurement Research Team
The procurement organization at ABC Company holds itself to a strict definition of net savings that excludes cost avoidance. As the company's procurement leaders explain, their organization should not get credit for numbers that shareholders do not see and reward. The Net Savings Metric dashboard minimizes political debate that would undermine confidence in reported numbers. User Tip: Leveraging this scorecard to emphasize net savings, calculated by adding price increases, price decreases, and savings initiatives.
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