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PRICE REDUCTION SAVINGS
2020 - 04 To 2021 - 03

Savings Calculation
Benefits
Utilize this section to understand the savings generated from strategic sourcing events on spend
currently under management using Ariba Sourcing solutions. 1.47 M 0.64 M 2.11 M
Awarded Savings Non-Awarded Savings Price Reduction Savings
Definition
Savings estimated at Item Level taking into account awarded, historic and bid spend.
Solutions in Scope Savings Calculation - Details
SAP Ariba Sourcing, SAP Ariba Strategic Sourcing Total Events conducted in Sourcing solution 14
Savings Methodology Events with Spend captured in Sourcing solution 6
Awarded Savings Spend in scope for Savings calculation 17.63 M
When Historic Spend > 0, Savings = Historic Spend - Awarded Spend Awarded Savings Non Awarded Savings
When Historic Spend = 0, Savings = (Avg. Value of Bids or Max. Bid Value) – Historic Spend Awarded Spend 7.47 M Non Awarded Spend 25.1 M
Non-Awarded Savings Average Value of Bids 6.76 M
Historic Spend Available No Historic Spend
When Historic Spend > 0, Savings = (Historic Spend or Max. Bid Value) – Avg. Value of
Bids Historic Spend Available No Historic Spend
Historic Spend NA (Avg Bid or Max Bid) 8.94 M
When Historic Spend = 0, Savings = Maximum Bid Value - Average Value of Bids
Filters Historic Spend NA 7.4 M
From the total events, the following filters are used to qualify events for savings Historic-Awarded=Saving (Avg Bid or Max Bid)-Historic=Saving (Historic OR Max Bid ) – Avg. Bid = Savings Max Bid – Avg. Bid = Savings
calculation NA 8.94 M - 7.47 M = 1.47 M 0 M - 0 M = 0 M 7.4 M - 6.76 M = 0.64 M
Event should have Suppliers participating
Event Type should be an RFP, Forward Auction, or Auction Awarded Savings = 0 M + 1.47 M = 1.47 M Non Awarded Savings = 0 M + 0.64 M = 0.64 M
Test Event “No”
Event Status should not be “Cancelled”
should not contain the word ‘Test ‘ or ‘% Test %‘ or ‘% Test’
Event Title should not be Null
Awarded Spend to Supplier should not be >= $1.00 Billion USD
Lead Bid Total should not be >= $1.00 Billion USD
Historic Spend should not be >= $1.00 Billion USD
Bids Submitted should not be 0

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