The report highlights the limitations of the current savings reporting methodology and the need for a change. Hard savings, which exclude strategic purchases, may not fully capture the impact of benefits that are classified as "soft" savings. Soft savings, although difficult to measure precisely, are no less real and can be significant. The current methodology also hinders more strategic behavior in procurement and excludes most upstream or downstream benefits. The report emphasizes that cost savings is the primary procurement metric, but narrow definitions of hard-dollar savings may underestimate the measurable contribution to the organization. Therefore, a change in savings reporting methodology is necessary to accurately reflect the full impact of procurement activities on the business.
