Procurement Savings Calculator

A procurement savings calculator is a tool used to determine the cost savings achieved by negotiating better prices or terms for purchased goods or services. It helps businesses quantify the financial impact of procurement efforts and track the efficiency of cost-saving initiatives. Procurement savings are calculated based on the difference between the original and negotiated costs, multiplied by the quantity purchased.

Procurement Savings Calculator

‍How to Use a Procurement Savings Calculator

  1. Enter the Original Unit Cost: Provide the price before negotiations.
  2. Input the Negotiated Unit Cost: Enter the new, lower price after negotiations.
  3. Add Quantity Purchased: Specify the number of units being purchased.
  4. Review Results: The calculator will compute the total savings, including the percentage reduction achieved.

3 Examples of a Procurement Savings Calculator

  1. Manufacturers: Track savings from bulk purchasing raw materials at discounted rates.
  2. Retailers: Quantify cost reductions from negotiating supplier contracts for products.
  3. E-commerce Businesses: Measure savings from securing better shipping rates with carriers.