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Coupa Success Portal

Savings Programs


One of the key ways to measure success is to track how much money the organization has saved by tactical changes within your procurement process.

Coupa allows you to track these changes in our Savings Dashboard. We look at a variety of different measures that add up to a total savings that is generated through the system.

You can setup these metrics within your Coupa Service by going to Setup > Dashboard Controls. From there you can setup preferred supplier saving percentages and dollars saved per transaction among other things.

That's the How part of setting up the Savings Program.

The Why Part should be obvious! It's because you need a way to capture the information that your team is doing in terms of negotiating contracts with vendors, cutting down on processing time of orders, rejecting requisitions that don't make sense, and a variety of other items.

Let's explore each savings metric in more detail:


A critical part of your success with Coupa is utilizing Coupa's robust approval process to get "permission beforehand as opposed to forgiveness after the fact".

It is important to track this savings to note how much you have saved as part of Coupa.

Avoidance savings is computed by value of each requisition and expense report that has been rejected during the approval process. If it was resubmitted and is pending approval or approved, then it is not counted.

Discounts Taken

Coupa can increase the velocity of your invoicing process. This will allow you to pay invoices more quickly and take advantage of prompt payment discounts.

Driving your suppliers to invoice through CSN or cXML can dramatically increase your opportunities to take prompt payment discounts by shifting the invoicing burden to your suppliers.

Finance and procurement can work together to target suppliers where a prompt payment discount makes sense. Procurement can then lead the efforts to negotiate a prompt payment discount.

Savings is computed by value of all invoices multiplied by the discount rate on the payment term, if the payment date is within the timeframe between invoice date and the # of days for discount payment.

Preferred Supplier

Critical to the effectiveness of Coupa is driving your spend to targeted items, contracts, and suppliers.

After you negotiate a savings rate for an item, contract, or supplier, you can indicate the savings percentage on each of these objects.

By inputting the savings for each of these items, your total savings will automatically be tracked through Coupa.

Savings is computed by value of all purchase order lines multiplied by the savings % level associated with the item, contract or supplier of the order. The savings level for contracts and suppliers can be set on the Dashboard Controls page.

Process Savings

Creating invoices, expense reports, and purchase orders represent a significant cost for organizations. Coupa can generate a significant savings by automating these processes.

In Coupa's dashboard controls, you can record the average cost for creating a purchase order, flipping an invoice, supplier created an invoice, and creating an expense report.

It also serves as a good reminder that a greater savings can be reaped by driving suppliers to invoice through the Coupa Supplier Network or via cXML.

Savings is computed by # of orders, # of invoices created by internal user, # of invoices created by supplier user, # of expense reports multiplied by associated process savings level per transaction. The process savings levels are set on the Dashboard Controls page.

RFQ Savings

Buyers in Coupa can create RFQs to competitively bid larger purchases. By having suppliers compete against each other, you'll reap hard dollar savings on these purchases.

When creating the initial RFQ, include an estimate of the cost of the good or service in the "Base Price" field. The base price will stay internal. As you bring in bids from suppliers, the bid will be compared to the base price and the difference between the accepted bid and base price will represent the savings for your organization.

Savings is computed by taking all orders backed by a quote line (from an RFQ) and comparing the PO price with the base price from the RFQ or the highest bid.

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