The lost savings opportunity report is a way of taking the next step from compliance reporting. Once the compliance report has been completed, lost savings opportunity reporting can be used to quantify the potential savings lost from non-complaint spend. While compliance reports are more of a preventative process, lost savings opportunity reporting is a reflective process. It helps you see where you went wrong and prepares you for better decisions in the future.
How does it work at CoVest?
Taking the line item spend detail used in the compliance report, CoVest uses our internal databases to cross reference the item number from the actual supplier to the item number for our preferred supplier. Once we have cross referenced any part numbers we can to our suppliers' part numbers, we pull in our pricing and do a simple savings analysis. The result is a report that shows:
- What you actually spent and with whom
- What you could have saved buying through the preferred supplier
- The specific items from the preferred supplier that you should have purchased
It answers the question: If spend is still going to other suppliers, how much could the company have saved if it instead went through the preferred supplier?
- This report provides specific examples of lost opportunities and highlights the importance of compliance
- Gives specific items and data for the member to act on
- Helps drive compliance and optimize savings
Why CoVest does it best?
This is not an industry standard report, we take a further step that most companies don’t take on their own. We are skilled at analytics and have the necessary data to do the analysis, which means we provide an accurate representation of what your saving could look like when utilizing the preferred CoVest supplier.
Read next blog: Core List Rewrites: Maintain Your Savings!
Read our blog on the previous Category Management step, Why Utilizing Compliance Reports Make a Difference or start our Category Management series from the beginning, Category Management Essentials.
Click the image below to download a sample of an Office Supply Savings Report!