Are we still fighting to get Cost Avoidance recognition from Finance ? 💫

Are we still fighting to get Cost Avoidance recognition from Finance ? 💫

Spoiler: If sales can do it, why can’t procurement?? …answer in the deck:)

So, let’s rethink procurement’s story. We talk about savings, we talk about efficiency, but let’s shine a light on something quietly shaping financial resilience: cost avoidance 🫣.

It’s not flashy. It doesn’t sit proudly on the P&L. But it’s there, working in the shadows, keeping the business steady when risks loom large! Right ? This isn’t just numbers->it’s hours of work, negotiation, & strategy.

Here’s the heart of it: securing fixed contracts during volatile markets, deferring price hikes, mitigating inflation impacts -> procurement stops costs before they hit.

Finance doesn’t see them on paper, but the impact is real.

Imagine this: price increases that never happened, expenses dodged, stability safeguarded. That’s cost avoidance.

What we’re calling for is simple: recognition.

1. Add it to reports ===> make it visible.

2. Measure it with smart metrics like “Avoided Cost Ratio.”

3. Model scenarios that show “what could’ve been” without procurement’s actions.

4. Bake it into budgets where it belongs.

5. Validate it externally for trust.

And most importantly, make it a shared win with regular a strong collaboration with finance.

Cost avoidance isn’t about asking for a pat on the back.
It’s about giving procurement a voice where it matters–> alongside savings, alongside revenue.

Let’s dive into the cheeky comparison with Sales & figure out how we can push cost avoidance onto finance’s radar with some flair….follow through, you’ll find out soon!

And as always thank you for your support and let me know if you’re with me:) and how we can influence Finance to finally recognize this? tell me your story, I’d love to hear it and learn from you! Thank you 🙏