Cost Avoidance as a Percentage of Managed Spend

Benchmarking Report

Cost Avoidance as a Percentage of Managed Spend

This PDF report includes benchmarking data (in a visual, chart-based format), a comprehensive KPI definition, characteristics of high performers and technical details on measuring Cost Avoidance as a Percentage of Managed Spend. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.

What is Cost Avoidance as a Percentage of Managed Spend?

The dollar amount saved through cost avoidance divided by the total dollar amount of managed spend over the same period of time, as a percentage.

Why should Cost Avoidance as a Percentage of Managed Spend be measured?

Cost Avoidance as a Percentage of Managed Spend measures the Procurement function’s ability to “avoid” costs through diligent procurement practices. Lack of attention to potential cost avoidance savings may be indicative of sub-par procurement processes and vendor relationships as well as sub-par procurement employee performance and training, all of which may increase organizational opportunity costs related to missed cost savings (i.e., saved cash could have been allocated to another area to improve service, products, etc.) and make it more difficult for the company to fulfill its liabilities in a timely fashion. Companies need to implement measures to track cost avoidance as it does not show up in financial statements or budgets.

Download a Sample Cost Avoidance as a Percentage of Managed Spend

Frequently Asked Questions

Q: How do you collect and validate your data?

A: From real-world consulting engagements with Fortune 500 leaders. We’ve spent 25 years conducting original research and anonymizing data from our engagements with top companies around the world. Every single data point we collect is scrutinized by our analysts to conform to established baselines and our rigorous in-house validation process. We won’t serve it up to you unless it meets our tough standards for utility and value.

Q: How much information will my Benchmarking Report contain?

A: Enough to produce a useful benchmark. And rest assured that it’s all current, validated, and useful. We only include data that’s been collected in the last five years. And while sample sizes vary by KPI, the average is 25, and the high end can surpass 1,000.

Q: How often do you update your reports?

A: Every year. We’re constantly gathering, scouring, and processing new data. We update our reports based on trends our analysts detect in the data, as well as the demand from our consulting clients and customers like you.

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