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Blog
How Do You Show Value? VII
October 9, 2008
You can use your tracking system to create interest and build momentum for your results. Following is just one method to do that.
In Part IV of this series, I described the concepts of “Identified,” “On the Table,” “Negotiated,” and “Realized” results. You can think of these milestones are directly related to different phases of true strategic sourcing. “Identified” results are the outcome of doing the homework on a sourcing category – they represent the potential cost reductions possible for all efforts currently underway.
“On the Table” results reflect the current status of RFP efforts that are unfinished. You can think of this as work-in-progress.
“Negotiated” results are the annualized results from completed negotiations.
“Realized” results reflect the implemented results flowing to the bottom line.
The FIGURE shows one approach to displaying that information in a format suitable for senior management.
Posted by Robert A. Rudzki on October 9, 2008 | Comments (4)
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