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COMPLIANCESAVINGS
2020 - 04 To 2021 - 03

Benefits Savings Calculation
Utilize this section to understand the possible savings generated from the following:
33.06 M 3.09 M 36.15 M
To what degree did the customer, using SAP Spend Management solutions, enforce purchases
that conform to negotiated pricing which would have otherwise resulted in maverick spend and User Compliance Savings Supplier Compliance Savings Total Compliance Savings
overpayment (user compliance). This section also looks to estimate the frequency which the
customer detects and eliminates invoice errors and duplicate invoices that would have otherwise
resulted in paying more for goods or services without SAP Spend Management solutions (supplier
compliance).
Definition Savings Calculation - Details
User Compliance Savings: User Compliance Savings
Savings estimated based on reconciled invoice spend originating from Catalog or Non Catalog/
Contract purchase. This metric estimates the value achieved as the marginal improvement over 2,511.26 M 12.28 % 10.72 % 33.06 M
what was likely the original user compliant throughput before implementing SAP Spend X X
Management solutions multiplied by the benchmark savings rate. Compliance Savings: Savings Total Compliant Spend Maverick Spend Savings Rate Compliance Savings
estimated based on reconciled invoice spend that matched any PO or Contract. The metric
estimates supplier compliance value by multiplying the compliant throughput with Hackett’s Only Reconciled Spend in Scope SAP Ariba Benchmark SAP Ariba Benchmark User Compliance Savings
benchmark non compliant invoice spend rate.
Supplier Compliance Savings: Total Spend 6,330.41 M Total Compliant Spend: Reconciled Invoice Spend (if not present, PO Spend)
which is on Contract or on Catalog
Savings estimated based on reconciled invoice spend that matched any PO or Contract. The Spend on Contract 2,509.93 M Maverick Spend: Value from the SAP Ariba Benchmarking Program
metric estimates supplier compliance value by multiplying the compliant throughput with Hackett’s
benchmark non compliant invoice spend rate. Spend not on Contract but on Catalog 1.33 M Savings Rate: Value from the SAP Ariba Benchmarking Program
Solutions in Scope Total Compliant Spend (Contract/Catalog) 2,511.26 M
User Compliance Savings:SAP Ariba Buying, SAP Ariba Invoicing, SAP Ariba Buying and Invoicing
Supplier Compliance Savings:SAP Ariba Invoicing, SAP Ariba Buying and Invoicing, SAP Ariba Network Supplier Compliance Savings
Savings Methodology 3,431.81 M X 0.09% 3.09 M
User Compliance Savings = Total Compliant Spend x Maverick Spend x Savings Rate Total Compliant Spend Non Compliant Invoice Compliance Savings
Spend Rate (%)
Supplier Compliance Savings =Total Compliant Spend x Non-compliant Invoice Spend Rate Only Reconciled Spend in Scope The Hackett Group's Benchmark Supplier Compliance Savings
Filters Total Spend 6,330.41 M Total Compliant Spend: Reconciled Invoice Spend (if not present, AN Spend)
which is on Contract or against a PO
Invoice status = "Reconciled" Spend on Contract 2,509.98 M Non-compliant Invoice Spend Rate: Benchmark value from The Hackett
Group
Spend not on Contract but against PO 921.83 M
Total Compliant Spend (Contract/against PO) 3,431.81 M

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