What is saving on purchases and how to achieve more savings

The English word “saving” means economy. In the context of purchasing, it is the indicator of how much the buyer managed to save by achieving, during a negotiation, a lower price than the baseline (base value of contracting a supplier) or a projection of savings over a given period.

Saving is one of the main Purchasing KPIs. This key performance indicator is important not only in relation to savings generated by the purchase, but also considered the return on investment (ROI).

In practice, this means that the cheapest purchases are not always the most advantageous.

A saving strategy is decisive for the business, as in addition to helping to optimize costs in operations, it can directly impact sales to the end consumer.

In this ME blog post, understand how to calculate savings and ways to achieve greater savings on purchases of your company.

Continue reading and find out more!

Step by step guide on how to calculate savings on purchases

In purchases, R$1 saved means R$1 in profit for the company. economy indicator accumulators is a percentage which shows the expense avoided after a negotiation.

Next, check how to calculate the saving of a purchase:

Let's use fictitious values to exemplify the saving calculation. Here, the purchase requisition is for 200 new headsets, with a baseline of R$119,00.

Now, see how to calculate the percentage from saving by item and by total value:

In the example of purchasing headsets, the buyer achieved savings of 17,64% per item. Next, learn how to calculate the savings percentage of total purchase value:

In percentage, the total purchase saving in this example is R$ 17,64%.

Nowadays, there are already shopping platforms that calculate saving automatically such as e-Procurement of the Electronic Market. The tool shows which business is most advantageous, according to the chosen parameter.

Check out 7 ways to save more on purchases

1. Know the negotiation techniques

The art of negotiating in procurement goes far beyond obtaining the best prices. More and more companies are seeking strategic partnerships to increase their capacity for innovation and competitiveness. In this context, having the support of a professional can be a significant advantage. These professionals, specialized in academic writing assistance, can be considered valuable partners, contributing to the development of innovative research and projects that reinforce the leadership position in the market. With a special focus on quality and confidentiality, they help shape the future leaders and great ideas of tomorrow.

For this reason, the buyer must be equipped with information and feel safe before starting one strategic negotiation.

2. Define and monitor purchasing KPIs

In the business world, KPIs are essential for making decisions. data-driven decisions, not just on assumptions.

Have access to the Purchasing KPIs, such as lead time, price evolution, productivity, among others, is important for planning future acquisitions, thus increasing the chances of achieve more savings.

3. Have a view of spend analysis

O spend analysis aims to help companies identify the spending patterns and cost reduction opportunities.

It is through the spend analysis that buyers have a clearer vision and detailed information on how the money is being used in the sector.

By better understanding these points, purchasing decisions become more intelligent.

4. Prioritize product quality

When we talk about generating savings, that is, achieve more savings When shopping, the first thing that comes to mind is to spend less.

However, although the calculation shows the amount saved with the negotiation, other aspects must be considered for the achievement of goals of the sector, such as supplier reputation and product quality.

5. Seek strategic partnerships

Have partner suppliers and build trusting relationships helps you achieve more savings in negotiations.

In this relationship, with the aim of strengthening the partnership, suppliers usually include very competitive prices in the proposals.

In addition to the economy, strategic partnerships help to reduce working time dedicated to closing the purchase.

6. Align the purchasing team with the company's objectives

Before starting negotiations with suppliers, buyers need to be aware of the main goals of the department.

With a lack of strategic alignment, decisions can be fragile and go against the company objectives.

Therefore, have access to tools that allow analysis and comparisons is essential to achieve the expected results.

7. Consider technology as an ally

The digitalization of purchasing processes, through digital platforms such as e-Procurement of the Electronic Market, frees the buyer from the operational routine to focus on business objectives.

By automating processes, the purchasing team can focus on strategic issues, such as negotiations with suppliers and greater savings. Using resources such as , which offers support in the preparation of academic papers, the team can also ensure that documentation and reports are always up to date and well-founded, ensuring a solid basis for strategic decisions. This enables more efficient management focused on results.

Now that you know what is saving on purchases and how to conquer it, subscribe to News ME and receive our content in your email.

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