Procurement Value

Procurement Value, in economic terms, is a metric that assesses the efficiency and effectiveness of the resources invested in acquiring goods or services. This concept breaks down into several components, starting with the utility derived from supplier products or services divided by the overall expenditure. This decomposition further extends to analyzing the relationship between activity and cost, with cost breaking down into its components of price and non-price costs.

In essence, Procurement Value goes beyond mere financial considerations, encompassing the broader spectrum of utility derived from the procurement process. It serves as a comprehensive indicator of the efficiency and effectiveness of procurement activities, aiding organizations in making informed decisions to maximize the value they derive from their investments.


Learn more about Ivalua's procurement analytics solutions.