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Contract Negotiation Savings

Purpose -

Measures the savings achieved through negotiation efforts.

Operational Definition -

(Initial Supplier Quote - Final Contract Price) / Initial Supplier Quote × 100

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Higher the better

Recommended Frequency - 

Quarterly

External References -

https://www.zluri.com/blog/procurement-kpis

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