Savings Methods
Savings Methodologies always vary from client to client. The ongoing debate about soft-dollar vs. hard-dollar savings continues. Additionally, the discussions around quantifying demand management vs. per unit savings can provide ambiguity to the savings methods.
HCMWorks has developed 4 distinct steps to ensure the savings methodologies are properly documented and reported:
-
Documented Savings Definitions/Baseline:
HCMWorks establishes upfront a mutually agreed-upon set of definitions and formulas to verify the calculations and understanding of savings within any organization.
-
External Validation:
HCMWorks and the organization’s procurement department will work with the organization’s internal finance department to serve as an impartial third party review of all savings methodologies and credits.
-
Hard Dollar vs. Soft Dollar:
While most organizations are primarily interested in the hard-dollar results of a project and its relationship to the program’s ROI, HCMWorks knows that the soft-dollar benefits are important to be recognized even if on a secondary basis. Cost avoidance and risk mitigation are important components of our programs.
-
Executive Validation:
We assist our clients in the creation of the valuable information to report to the Executive and Board Level. It’s not uncommon for our projects to serve as the “marquee” results presented to an organization’s top management.
Indirect Procurement intelligence beyond what our competitors provide – we don’t just guide our clients on what they can achieve, we help them achieve it.
- Beyond analysis and strategy, our teams of experts assist our clients by implementing successful change management and adoption programs that ensure sustainability and success.
- Technology Agnostic. We don’t believe systems are a “one size fits all.” Our analysis of your firm’s expenditures reveals the best market solutions based on your corporate goals, cultural nuances and definitions of business success.
- Create enterprise intelligence on a single platform for tremendous indirect procurement visibility.
- Our programs can be deployed from analysis to implementation within 3-6months with a rapid return on investment.
- Proof-of-Concept. We can start slow then move fast. Let’s collectively demonstrate to all constituents what success can look like.
