{"id":2293,"date":"2007-05-28T11:35:00","date_gmt":"2007-05-28T11:35:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2007\/05\/28\/cost-savings-reports\/"},"modified":"2021-07-17T21:23:52","modified_gmt":"2021-07-18T01:23:52","slug":"cost-savings-reports","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/","title":{"rendered":"Cost Savings Reports"},"content":{"rendered":"<p>I hope that you have enjoyed the article \u201c<a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/cost-savings-reports\/\">Cost Savings Reports: Why Some Are Weak<\/a>.\u201d<\/p>\n<p>There is one point I really wanted to expand on in the article \u2013 Problem #2, Using Poor Quantity Estimates.<\/p>\n<p>I know that many purchasers out there will say \u201cI got the quantity estimates from my internal customer. So it\u2019s not my fault if they overestimated and we don\u2019t realize the amount of savings we expected to realize!\u201d<\/p>\n<p>I disagree.<\/p>\n<p>If you are reporting cost savings estimates, you are (and should be) held accountable for the accuracy of those estimates. Don\u2019t try to pass the buck. Executives don\u2019t care to hear about other people\u2019s roles in why you didn\u2019t do a good job. Haven\u2019t you watched The Apprentice?!?!?!<\/p>\n<p>So, when given a quantity estimate by an internal customer, ask some questions, such as:<\/p>\n<p>1. How \u201cset in stone\u201d are these quantity estimates?<\/p>\n<p>2. What are the assumptions that were made in developing the quantity estimates?<\/p>\n<p>3. What are all of the circumstances that could arise that could change the quantity estimates?<\/p>\n<p>4. What are the likelihoods of each of those circumstances changing (high, medium, low)?<\/p>\n<p>5. Instead of reporting a single number for our quantity estimates, if we had to report an extremely certain quantity range, what would the range be?<\/p>\n<p>Sometimes, it may be safer to report that you\u2019ll achieve cost savings of between $250,000 and $600,000 than to report that you\u2019ll save $500,000.<\/p>\n<p><a href=\"https:\/\/www.certitrek.com\/nlpa\/individuals\/membership\/\">Become a member of one of the world\u2019s largest procurement associations today.<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Recommended Reading<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/lms.nextlevelpurchasing.com\/\"><strong>Contract Review Checklist<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/lms.nextlevelpurchasing.com\/\"><strong>Contract Termination Letter<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/lms.nextlevelpurchasing.com\/\"><strong>Eliminating the Pain Out of Contract Management<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/lms.nextlevelpurchasing.com\/\"><strong>Is Contract Management a Critical Process?<\/strong><\/a><\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong>Visit <a href=\"https:\/\/lms.nextlevelpurchasing.com\"><strong>NLPA Learning<\/strong><\/a>, the new home to all of our certifications and online courses. NLPA Learning also includes learning resources, including live and on-demand webinars, publications and reports, articles, templates, white papers, and much more!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I hope that you have enjoyed the article \u201cCost Savings [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4118,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,22],"tags":[],"class_list":["post-2293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cost-reduction","category-procurement-processes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cost Savings Reports - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cost Savings Reports\" \/>\n<meta property=\"og:description\" content=\"I hope that you have enjoyed the article \u201cCost Savings [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/\" \/>\n<meta property=\"og:site_name\" content=\"Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NextLevelPurchasing\/\" \/>\n<meta property=\"article:published_time\" content=\"2007-05-28T11:35:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-18T01:23:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/11\/nlpa-images-128.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1067\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:site\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/\"},\"author\":{\"name\":\"Galo Matagay\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#\/schema\/person\/72d094fab77892483dfa6e061cb27eaa\"},\"headline\":\"Cost Savings Reports\",\"datePublished\":\"2007-05-28T11:35:00+00:00\",\"dateModified\":\"2021-07-18T01:23:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/\"},\"wordCount\":312,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#organization\"},\"articleSection\":[\"Cost Reduction\",\"Procurement Processes\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/\",\"url\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/cost-savings-reports\/\",\"name\":\"Cost Savings Reports - 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