How to log savings in a procurement request
💡 Only Procurement Manager (role) can log saving price.
In a procurement request, procurement manager can log request savings. In order to log savings, every new price quoted by a vendor should be add in Negotiation- Price history section. Every new price added, will replace the request amount.
The final saving computed for the request will be in Negotiation - Saving Performance section.
Saving Amount = Final Price - Base Price.
Base Price = Initial Price provided by requester by default, but can be modify if you’re using another saving formula internally. For instance, Last Price - Public Listed Price.
This saving can be qualified either as Cost Savings (known as Hard Savings per Procurement Manager) or Cost Avoidance (known as Soft Savings per Procurement Manager).
For reporting, saving can be allocated by choosing one type of recognition period:
Once at start date - 100% of the saving amount will be allocated to the Purchase Request Start Date
Contract Duration based - saving amount will be allocated proportionaly from Purchase Request Start Date to End Date
Advanced savings usage
You can define Saving Goal when you’re assigning as Procurement Owner of a Request
How to export savings data
You can use Request Export Table feature to export every request data including savings data and create your own internal saving report
How to visualise savings dashboard
You can use Dashboard to visualize Saving Dashboard
You can use filters to zoom on:
Completion Period - when the saving has been performed through a request
Impact Period -to zoom on the impacted year/period
Category - to zoom on some specific purchase categories
Department
…
Our standard Savings views are:
Total Saving per year
Total Saving per month
Per Saving Type
Per Department
Per Purchase Category