Savings Tracking Software
A savings tracking software helps an organization get a complete overview of project savings throughout its life cycle, with real-time, enterprise-wide savings visibility for better, more informed business decisions.
Understanding Savings Tracking Software
Savings tracking software systems are developed to plan, execute and track every cost-saving initiative across various projects in an organization. Savings tracking software helps users plan and roll out discreet savings projects and entire cost-reduction programs. The software defines the scope and helps establish savings targets for every strategic sourcing program. It also helps in capturing results and measuring savings performances.
Savings Tracking Software – Business Need
What happens when there is a lack of collaboration between procurement and finance?
- Procurement objectives may not be aligned with business performance objectives.
- Savings reported by procurement may not be recognized by finance
- Mapping the impact of cost savings on the balance sheet may be difficult
- Keeping track of forecasted vs. negotiated vs. realized savings and of cost-savings vs. cost-avoidance gets difficult
How can Savings Tracking Software help you?
Help you meet your procurement objectives, so you have a more significant business impact through:
- Calculation of the effects of procurement savings on P&L and balance sheet
- Ensured transparency into forecasted and achieved savings by maintaining a single version of the truth
- Mapping and automation of existing approval workflows for efficient collaboration between procurement and finance
Savings Tracking Software – Features
We define savings tracking software as a strategy that estimates how much cost reduction will be realized if an organization adopts strategic sourcing and other cost-effective tactics.
Most procurement teams use “Source-to-Pay” or finance software to configure, manage, and track custom savings. More advanced software allows an organization to track recognized and unrecognized savings and repayment agreements according to company policies. This provides transparency and accuracy in monitoring and reporting savings.
Once the information is available, the stakeholders can estimate and judge whether their cost reduction and saving tactics are beneficial.
In most organizations, four things must be done for savings tracking software to succeed. These are:
- The business has to try to reduce costs.
- Risk management has to be implemented.
- The introduction of new services and products to gain enough market value.
- Cash flow has to increase.
Successfully implementing savings tracking can only occur if all stakeholders in the organization are involved and work towards achieving this goal.
It helps you to track your savings and collaborate better by:
- Providing function-specific views into individual projects and associated savings
- Mapping of forecasted savings to budgets
- Offering financial savings generator
- Tracking savings across multiple parameters like business divisions, time, savings type, and impact type
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