How to Calculate Procurement ROI
What is Procurement ROI?
Procurement ROI Calculator helps logistics and supply chain professionals optimize operations and reduce costs.
Formula
Procurement ROI = (Cost Savings - Procurement Cost) / Procurement Cost × 100
Step-by-Step Guide
- 1Calculate savings from better contracts vs procurement overhead
- 2Apply the formula with your specific values
- 3Use the result to optimize operations or costs
Worked Examples
Input
$50,000 savings, $10,000 cost
Result
ROI = (50000-10000)/10000 × 100 = 400%
Common Mistakes to Avoid
- ✕Using incorrect units or dimensions in the calculation
- ✕Ignoring surcharges and accessorial fees
Ready to calculate? Try the free Procurement ROI Calculator
Try it yourself →