How to track and report key functional metrics to reduce expenses and improve effectiveness?

First step would be analyzing the baseline information/data. How much you're paying now, what is your annual spend and how many service providers you have. Then do the spend analysis or spend management where you collect, classify and analyze the budget data with the purpose of decreasing procurement cost, improving efficiency and monitoring compliance.

Once it is done, I would move to building key metrics for all spend categories which will help to monitor progress and thus ensure success in realizing the cost saving targets and sourcing opportunities. The measures range from understanding the current performance of a category to detailed specific supplier performance metrics.

It is also critical for procurement professionals to maintain trustworthiness by tracking actual savings.

Thanks

Umair