In today’s uncertain environment, every dollar matters. Procurement teams invest significant time and effort negotiating contracts that promise cost savings, efficiency, and competitive advantage. Yet too often, those savings fail to reach the bottom line.
This podcast explores why at least 20% of negotiated procurement savings are lost and why savings leakage has become a strategic risk for organizations. From poor compliance and fragmented systems to misaligned stakeholders, the discussion highlights the blind spots that erode value after contracts are signed.
Rather than treating savings leakage as a downstream issue, the conversation focuses on fixing the problem at its source. Strong governance, better alignment, and smarter use of technology emerge as essential levers to ensure negotiated savings are actually realized.
What You’ll Hear:
- Why negotiated procurement savings frequently fail to materialize
- The root causes of savings leakage across sourcing, compliance, and systems
- How organizations can close the gap between negotiated and realized savings
Podcast Summary
The conversation examines why a significant portion of procurement savings never reaches the bottom line. Even as procurement teams negotiate strong contracts, poor compliance, fragmented processes, and outdated systems often prevent savings from being realized.
The hosts discuss how misalignment between procurement and the business creates early leakage. When stakeholders are not engaged or sourcing decisions conflict with operational priorities, compliance drops and negotiated value erodes.
Technology and process gaps further compound the problem. Disconnected systems, limited catalog coverage, and manual tracking make it difficult to enforce pricing, manage rebates, and direct spend to preferred suppliers. These gaps allow leakage to persist unnoticed.
The podcast concludes with a clear takeaway. Savings realization requires more than strong negotiations. With executive sponsorship, cross-functional governance, and AI-enabled visibility, procurement can bridge the gap between sourcing decisions and real financial impact, ensuring that every dollar negotiated is a dollar saved.