How to build a winning Digital Procurement strategy?

Use Cases

Irrespective, of the type of spend there are a few use cases that are common across both these types of spend.

Key Performance Indicators (KPIs)

The key performance indicators or KPIs include the following:

  • Savings: This KPI is a measure of savings unlocked from applying these constructs to optimize the spend. These are typically savings from negotiating an upcoming contract. you group and categorize the consumers based on information available. The goal should be to “tier-up the consumers”
  • Clawbacks: These are gains that come from either recouping money due to non-performance or optimizing the spend due to increased visibility. This KPI should be sparingly used or might have an unintended consequence of alienating the supplier base.

Value Management

Digital Procurement can typically unlock 1–2% of savings in a base case and upto 4% on best case on your annual spend in terms of value creation.



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