High ROI for Procurement
Financial and productivity value is baked into our solutions and validated by a top independent research firm.
What is Procurement ROI and Why Is It So Important?
Despite an increase in strategic responsibilities, Procurement’s status as a “cost cutter” still makes securing the budget for strategic digital solutions difficult.
Procurement ROI measures the financial impact of investments into the function, and it can be a powerful demonstration of the value Procurement can bring when equipped with the right tools.
SpendHQ offers helpful resources for bringing this value to life with quantifiable results and real ROI figures from Procurement teams around the world.
Self-Service ROI Calculator: Get a Custom Report
Built and maintained by Hobson & Company, this complimentary self-service calculator is a great resource for calculating the information you need for a compelling business case.
Simply select the solution you’re interested in, input your spend size; addressable spend, team size, and project volumes; and then download your custom report. Inside, you’ll find a complete breakdown of your expected payback period, three-year total ROI, and the financial value of various improvements to your workflows.
Procurement ROI Studies – Backed By Customer Experience
SpendHQ’s ROI calculator wasn’t the only result of Hobson & Company’s customer research. The firm also published two papers based on its findings.
These papers quantify the increased value customers have captured in cost savings and containment, productivity, and ESG progress. Particularly, the study found that a representative customer with $2 billion in annual spend volume and $1 billion in addressable spend can see:
- Spend Intelligence payback in less than 5 months and 660% ROI over 3 years
- Procurement Performance Management payback in less than 3 months and 814% ROI over 3 years
Read the press release covering other findings of this study.
Research Report: Spend Analytics ROI Business Case
On average, Hobson & Company found that SpendHQ’s Spend Intelligence customers experienced:
- 80% reduced time collecting and analyzing disparate spend data
- 10% increase in spend addressed
- 30% time savings on reporting against supplier diversity goals
- 5% increase in use of preferred suppliers
- 5% decrease in price amidst rising costs
Research Report: Procurement Performance Management ROI
Hobson & Company found that on average, Procurement Performance Management customers saw:
- 90% reduced time responding to ad hoc reporting requests
- 50% increase in savings targets
- 60% reduced time tracking the status of projects
- 50% time saved aligning with Finance on Procurement’s savings outcomes
- 30% time saved on prioritizing projects and allocating resources
See What Customers Said…
VP Global Procurement Strategy
Even in a very challenging environment and volatile markets, our year over year savings targets continue to grow with PPM.”
VP Procurement
Prior to SpendHQ… my 5-person analytics team would spend 25% of their time aggregating and analyzing data. Now we have one dedicated person that is spending about 10-15% of their time, and anyone who needs the data can login and access it directly themselves.”
Sourcing Director
Prior to PPM, we had 25 people spending 2 weeks aggregating the data and the report would go out every 2 months and needed validation for every single line. It was a huge effort because people working on it were from different organizations and it was challenging. Once we put PPM in place, that all changed.”
Strategic Sourcing Manager
SpendHQ has helped identify more opportunities for us. In 2022, we completed 110 projects, and in 2023, we (were) on track to complete 144 and anticipate continued growth year over year.”
Who We Help
The value of SpendHQ’s solutions reaches across the organization: From procurement leadership to buyers tracking their projects, to spend category owners and business stakeholders, and to Finance and C-suite decision makers.