Measuring is knowing. Without proper insights into procurement performance you’ll be in the dark, without the ability to measure success and benchmark for the future.
So it may seem counter intuitive that our research paper ‘The Procurement Innovation Report’ found that, whilst the majority of procurement professionals are ready to embrace the latest technologies to improve procurement processes, many still rely on legacy spreadsheets to measure and report ROI.
Recording procurement project savings by spreadsheet often means time-consuming manual input, resulting in multiple spreadsheets with different input structures and formats. So when the time comes to analysing and measuring the impact of projects this ultimately means extra time and effort for the finance and procurement teams, as they correct errors and interpret different inputs to give them the accurate information they’re looking for.
However, there is an alternative to sifting through numerous spreadsheets and organising data – and in doing so freeing up your time to do more productive tasks.
By adopting our 4 Step Savings Strategy with our web3 Savings Tracker you can get powerful, accurate and straightforward reporting that tracks savings against forecasts and targets.
Step 1: Set up objectives
Before you start running any savings-focused project the first step is to set up savings objectives, so you can measure outcomes against them. With web3 Savings Tracker, approved project team members can enter their savings targets and timeframes wherever they are via the intuitive web-enabled interface, which are then submitted for sign off by senior project, procurement and finance team members.
A template can be created so that multiple saving targets can be uploaded by users simultaneously. This is particularly useful when it comes to larger projects, unifying the input format and speeding up the process dramatically.
Step 2: Record savings against targets
With the targets set up, you can now compare your actual savings against them, so you can then analyse and evaluate the results. The measuring system in web3 Savings Tracker can eliminate external factors that can influence the result, such as savings made by third parties, so you can focus solely on the effectiveness of your own procurement effort. This can ensure the credibility of savings that have been reported.
Step 3: Verify and approve savings
Once actual savings have been made, project users can input the new savings figure into the system and request approvals from the senior members. The finance or accounts payable team can then verify the saving against the actual spend to ensure that the result match with the data within the business’ ERP systems.
To help the savings approval process, web3 Savings Tracker allows you to notify relative approvers via alerts, notifications or activity calendars. It also records the whole audit trail so the business can review it in the future. By automating these processes, you can rid yourself of unnecessary administrative work through better collaboration with other departments.
Step 4: Analysing forecast vs actual savings
Once you have captured your approved saving activity data, you can commence in depth analysis of actual spend against your saving targets and predictions. This will help with forecasting future spend and trends within various spend categories.
To help you do this, web3 Savings Tracker has a range of straightforward and easy to use reports that are suitable for presenting to different types of stakeholders.
With the right procurement technology system in place, procurement teams will no longer be buried in spreadsheets, trying to make sense out of all the disparate data to get their ROI. Not only can you record, approve and analyse savings easily, you can also demonstrate your team’s added value to the business as a whole more clearly.
web3 Savings Tracker is a high performance, intelligent solution that captures, measures and reports against your procurement savings. Gives yourself full visibility of your savings and ditch the spreadsheets today!