There is two type of saving, one is hard saving and another is soft saving. Hard saving is deflation in price with the same quality of product and service. Soft saving is when you compare the wining quotation with losing quotation; this is for first time purchase product or service.
My advice: Give your sourcing department an deflation saving target at the beginning of the year and make sure they report all the deflation saving project to finance manager. We as finance manager need to make sure this saving match with productivity saving we report out.
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