I hope that you have enjoyed the article “How To Use Cost Savings Ratios & When.”

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This article is actually the second one that originated from a podcast I did with Jim Nelles. And it may not be the last – the podcast was that good!

Though the article explained the reasons behind using cost savings ratios as opposed to straight monetary figures, I thought that this blog post could add value by including more examples of cost savings ratios, so here are a few more…

  • Cost of shop supplies per manufacturing employee per year
  • Cost of health benefits per employee per year
  • Cost of maintenance per company vehicle per year
  • Cost of operating an engine per hour (I used this in the airline industry)

Which ratios do you use? Post a comment to share!

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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