Blog Pick of the Week: What to do with the savings?
We are all familiar with the line from the "Jerry Maguire" movie - SHOW ME THE MONEY! In procurement we are often asked to SHOW ME THE SAVINGS! The blog of the week discusses just that which is why I selected it.
I have been involved in multiple conversations with procurement and finance. Do we reduce the budget by the savings achieved? Can we validate that it is "real" money? If the reduction is in marketing, should we allocate the funds and utilize them for additional programs or services.
In Paul Teague's blog, he discusses many of these factors.
What does your company do? Do the savings cover shortfalls in other areas? Do you have to reduce your budget or is more money available for R & D? Let us know your thoughts.