New Procurement ROI Calculator Shows How Customers Can Achieve a Potential ROI of 660% with Spend Intelligence and 814% with Procurement Performance Management
SpendHQ, the best-in-class Spend Intelligence and Procurement Performance Management solutions provider, commissioned an independent study with research firm Hobson & Company to provide procurement teams with data from real-world customer experiences that helps them build their business case for high-ROI spend analysis and procurement performance tracking.
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Procurement ROI Example from SpendHQ. (Graphic: Business Wire)
The Hobson research found that with SpendHQ’s spend intelligence, a representative customer with $2B in total spend volume and $1B in average annual addressable spend could pay back the cost in less than five months and generate an ROI of over 660% in three years. With SpendHQ’s procurement performance management (PPM), a representative customer with the same total spend volume and average annual addressable spend could pay back the cost in less than three months and generate an ROI of over 814% in three years.
To arrive at those calculations, Hobson in late 2023 conducted in-depth interviews with senior procurement staff across dozens of established customers located worldwide, to uncover all the areas of savings and value and then quantify the total positive impact procurement would have on the business with those solutions. The study found that challenges leading to areas of untapped ROI potential included missed savings opportunities in maverick and unmanaged spend, inefficient data analysis across disparate systems, time-consuming work to track progress of procurement initiatives and report outcomes, and difficulties measuring supplier diversity efforts.
“SpendHQ’s Procurement Performance Management solution is the backbone of our sourcing digital landscape, where we can monitor all our projects, track our performance, and keep key sourcing data shared across our organization,” said Cédric Le Savéant, chief procurement officer at Technicolor Creative Studios. “Since our implementation more than two years ago, the tool is fully embedded into our team like ‘the 12th man’ supporting us.”
SpendHQ now offers a self-service Procurement ROI Calculator, developed in collaboration with Hobson, to help solution researchers and decision makers instantly see the value potential for their organization and the multiplier effect they can generate even with current staffing levels. Interested companies can download a personalized report based on their own data inputs, which can help them assess, prioritize, and build their own business case to share internally with procurement and key stakeholders.
Hobson's study also summarized the average value realized by using SpendHQ to address procurement productivity challenges, including:
- 80% average time savings for collecting and analyzing disparate spend data
- 60% average time savings on tracking and statusing projects
- 50% average time savings aligning with finance on procurement’s savings outcomes
- 30% average time savings on reporting against supplier diversity goals
- 30% average time savings on prioritizing projects and allocating resources
"Procurement teams continue to play a crucial role in contributing to an organization’s overall top- and bottom-line value. But many teams still struggle with disparate data housed across inefficient tools that make it difficult to show finance and other key stakeholders where the money lies,” said Jason Treida, SVP, Customer Value Team at SpendHQ. “The Hobson & Company study solidifies our commitment to help our customers turn newfound spend insights and procurement processes into transformative initiatives for both financial and non-financial value creation.”
SpendHQ’s Strategic Procurement Platform is accelerated by AI and machine learning to categorize spend data using procurement best practices so it can quickly convert insights into the next procurement priorities. The platform has earned several badges by software marketplace G2, including the Winter 2024 High Performer, Winter 2024 Best Support and ‘Users Love Us’ badges, underscoring its commitment to quality and customer satisfaction. In 2023, SpendHQ’s impact on procurement grew to more than 500 customers globally, $1 trillion of spend data analyzed, and 135,000 procurement projects tracked and measured representing more than $210 billion in spend initiatives for its customers.
For more insights on the Hobson & Company research on driving high-ROI spend analysis, visit: www.spendhq.com/resources/the-roi-of-spend-analytics
For insights on driving high-ROI procurement performance management, visit: www.spendhq.com/resources/the-roi-of-procurement-performance-management
To start building your own custom ROI business case with SpendHQ’s new Procurement ROI Calculator, visit www.spendhq.com/resources/roi-calculator
About SpendHQ
SpendHQ is the leading best-in-class provider of enterprise Spend Intelligence and Procurement Performance Management solutions. The company’s SaaS products help customers move faster from the challenges of disparate spend and project data to clear value creation in one integrated experience, by producing actionable spend analytics insights that drive new initiatives, goals, and reporting of Procurement’s impact. Backed by nearly 20 years of procurement expertise and with more than 500 customers worldwide, SpendHQ’s solutions drive better financial and non-financial outcomes, advance procurement maturity, and demonstrate impact with data. www.spendhq.com
About Hobson & Company
Hobson & Company helps technology vendors and purchasers uncover, quantify and validate the key sources of value driving the adoption of new and emerging technologies. Our focus on robust validation has helped many technology purchasers more objectively evaluate the underlying business case of a new technology, while better understanding which vendors best deliver against the key value drivers. Our well researched, yet easy-to-use ROI and TCO tools have also helped many technology companies better position and justify their unique value proposition. For more information, please visit www.hobsonco.com.
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New #procurement ROI calculator shows how @SpendHQ customers can achieve a potential #ROI of 660% with spend intelligence and 814% with procurement performance management.
Contacts
Lane Kearney
Corporate Ink for SpendHQ
Spendhq@corporateink.com
