How the procurement savings calculator works
The calculator combines two proven sources of procurement savings. The first is negotiated savings: when you consolidate a fragmented supplier base and buy on-contract through a single marketplace, organisations typically capture 7–12% on price. The second is process savings: digitising manual, paper-and-email purchasing reduces processing effort by 40–60%, which directly lowers the administrative cost of every purchase order.
It multiplies your annual spend by the negotiated savings rate, and your annual purchase-order volume and processing cost by the effort-reduction rate, then adds the two together for an estimated annual saving. The figures are directional — a starting point for a business case, not a guarantee.
Common questions
How does the procurement savings calculator work?
It applies well-established procurement benchmarks to your inputs. Consolidating a fragmented supplier base and buying on-contract through a single marketplace typically delivers 7–12% negotiated savings, while digitising manual purchasing cuts processing effort by 40–60%. The calculator combines both to estimate an annual savings range.
Are the savings estimates guaranteed?
No. The figures are directional estimates based on typical outcomes from consolidating indirect and long-tail spend. Actual results depend on your categories, current supplier base and process maturity. Request a tailored breakdown for numbers specific to your organisation.
What counts as procurement or indirect spend?
Use your annual spend on goods and services outside strategic sourcing — office supplies, MRO, facilities, IT peripherals, consumables and similar categories. This indirect, high-frequency spend is where consolidation and automation deliver the most.
Is the calculator free to use?
Yes. The calculator is completely free and runs instantly in your browser. You only share your details if you want a tailored savings breakdown from our team.
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