Seven types of savings hidden in your invoices

The seven types

The examples below are illustrative. The first assessment, on your own data, shows which ones apply to you, and for how much.

PriceSignalThe same item bought for €8.90 at one site and €6.40 at another.Decision · whoAlign all sites with the contract price. Buyer.

Off-contractSignal12% of small-equipment orders go outside the negotiated contract.Decision · whoClose the parallel channel, remind sites of the contract. Buyer, site manager.

CommitmentsSignalA volume-discount contract will not reach its threshold, with three months left before it expires.Decision · whoConsolidate orders or renegotiate the threshold. Buyer, legal counsel.

InvoicesSignalAn invoice above the contract price, a discount owed but not applied.Decision · whoClaim the credit note, correct the reference data. Accounts payable.

StockSignalThree months of idle stock at one site, a stockout at another.Decision · whoTransfer between sites, adjust safety stock. Supply chain, storeroom.

DependenceSignal70% of a category sourced from one supplier whose raw material is in tight supply.Decision · whoQualify a second supplier, build a buffer stock. Buyer, supply chain.

BudgetSignalAs early as May, the year-end projection exceeds the approved budget by 4%.Decision · whoMake trade-offs early rather than discover the gap in December. Finance department.

Micro, macro, decision

The first four types are micro: they show up in what you pay. Dependence and some stockouts are macro: they come from what happens beyond your walls (shortage alerts, tight raw material supply, production origin). Argos cross-references the two and translates each signal into euros, then into a decision: quantified options, one person who makes the call, and follow-up through to realized savings.

Metrics tracked every month

Spend for the month and the year, by category, site, and supplier.
Share of purchases made under contract, and the consumption rate of each contract.
Identified overspend, estimated savings in the briefs, realized savings measured in the invoices.
Average time from a signal to a decision.
Supplier dependence index by category.

Two of these metrics show whether the product keeps its promise: realized savings, and the time from a signal to a decision. If those two are good, the rest follows.