Imagine being able to build a business case that demonstrates how a unified, AI source-to-pay platform and strategy deliver more than 1% savings on COGS spend through smarter sourcing and supplier management. Or how an e-invoicing rate of more than 80% can streamline operations across finance and AP while reducing the cost of transactions.
Quantifiable and relevant data play a critical role in aligning executive stakeholders — who often operate with competing mandates — around shared outcomes related to profitable growth. The right data makes it easier for everyone to see why the investment is necessary and embrace the change that comes with adopting new technologies and ways of working.
Finance and procurement leaders now have access to rich sources of data with two resources from Forrester commissioned by Coupa:
- Interactive ROI Calculator (for companies with revenues more than $300 million)
- The Total Economic Impact™ Of Coupa for Source-to-Pay (free study)
Keep reading to discover:
- Why quantifying total economic impact for source-to-pay matters now
- Total economic impact in action: The interactive Forrester ROI Calculator
- Total economic impact delivers benefits for growth, efficiency, productivity, resilience, and sustainability
- Build a better business case for source-to-pay investments with total economic impact
Why quantifying total economic impact for source-to-pay matters now
Nearly every company is susceptible to the margin erosion zone. Instead of relying on cost-cutting, forward-thinking finance and procurement leaders are increasingly turning to technology to transform their organization and equip it to grow profitably.
These leaders are cautious, too. Nearly one out of every two (45%) finance leaders plan to invest in AI to drive growth, yet most (89%) have doubts about a successful AI implementation. They’re concerned about margin impact and fast time-to-value. It’s never been more important to quantify multiple benefits from a single source-to-pay investment — and to justify the significant organizational change that comes with it.
Total economic impact in action: The interactive Forrester ROI Calculator
Coupa commissioned Forrester Consulting to develop an interactive ROI Calculator that helps leaders at companies with an annual revenue of more than $300 million estimate the potential impact that Coupa’s AI Total Spend Management platform could have on their organization. By answering six questions on revenue, spend, and headcount, users get:
- A financial summary and cash-flow analysis (risk-adjusted estimates)
- Quantified benefits for margin improvement and efficiency
- Qualitative benefits related to productivity, resiliency, and sustainability
“Companies are looking to create sustainable sources of value to optimize margins,” says Denise LaForgia, Product Marketing Director at Coupa. “What makes Forrester’s ROI Calculator so valuable is that it provides real data on what margin improvement and efficiency gains would look like at a specific company. Unlock funds to fuel growth — in what areas, and how much? Reduce transactions internally — which processes are automated and what is the potential to free up teams for other work? Details like these can really shift the conversation during the evaluation and consideration phase.”
Get a sneak peek at the Forrester ROI Calculator here.
Estimate the total economic impact Coupa could have on your organization.
Total economic impact creates margin multipliers in growth, efficiency, productivity, resilience, and sustainability
Finance and procurement leaders at both enterprises and mid-market companies can explore Forrester’s Total Economic Impact™ Of Coupa for Source-to-Pay study to discover how Coupa’s AI Total Spend Management platform helps them rapidly get their margin improvement on track.
For the study, Forrester interviewed four representatives of organizations with experience using Coupa, aggregated those experiences, and combined the results into a single composite organization that is a global manufacturing organization with 60,000 employees and revenue of $80 billion per year. Forrester points out that although Coupa provides solutions for businesses of all sizes, the ROI in this study is modeled for an organization the size of the composite.
Some highlights of how Coupa acts as a growth and efficiency multiplier for the composite organization:
- COGS-related margin improvement of 1.4% (accrued savings on the 20% of direct materials contracts up for annual renewal)
- Asset-redeployment margin improvement of 10% (achieved through a reduction in duplicative purchases)
- Sourcing and spend reporting efficiencies of 100% (made possible automating the entire process of reporting on sourcing and spend)
“For us, our SG&A savings from Coupa don’t include headcount. Instead, it’s saving on services contracts like advertising and consulting. We were targeting 0.5% margin improvement but were soon surpassing that and are now beating our even higher 0.7% target.”
— Senior Director of Indirect Procurement, CPG customer interviewed by Forrester
Discover more ways Coupa creates a margin multiplier effect.
The study also outlines how Coupa creates a margin multiplier effect for the composite organization in:
- Productivity: Coupa’s value management team provides clarity on benchmarking and performance relative to other businesses in the same sector.
- Resiliency: Coupa’s capabilities to build strong supplier relationships and manage risk proactively add value during times of increased supply chain failures.
- Sustainability: Coupa offers the structure and tools to analyze and understand the supplier base, making it easy to track and evolve initiatives for supplier diversity.
“Coupa has enabled us to be more intentional in tracking our award rates to diverse suppliers. It has been incredibly helpful to us in our goal of setting the competitive global standard for supplier diversity. We’re actually getting awards and accolades all the time now.”
— VP of Global Procurement Operations, food processing customer interviewed by Forrester
Build a better business case for source-to-pay investments with total economic impact
Planning your next technology investment for business transformation? Come to the table with data. Forrester’s interactive ROI Calculator and the Total Economic Impact™ of Coupa for Source-to-Pay study help finance and procurement leaders make smart, data-driven decisions about how to create margin impact with a limited budget and existing ERP landscape.
“Using Coupa for direct materials wasn’t built into our business case, but it soon became very clear our business needed it. We’ve improved supplier list management, contract management, and on-time payments. We now not only have more sourcing options than before, enabling better contract terms, we’re running a true total cost of ownership on all sourcing, and asking suppliers the right questions and getting better options for our business.”
— Innovation Manager, mining company customer interviewed by Forrester