Procurement is evolving to become a strategic advisor and trusted business partner, bringing additional value beyond cost savings. This additional value can be measured and communicated as Total Procurement Benefits (TPB), which elevates the status and influence of procurement within the enterprise. Enterprises measure procurement savings through various methods, often established between procurement and finance departments, and reflecting company goals. Hard-dollar savings are often tied to a zero-based budgeting approach, requiring costs to be justified and accounted for year-over-year on a bottom-up basis. Regardless of how savings are tracked, they are the primary attribute of any Total Value of Ownership calculations.
