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Procurement Savings Calculator

Enter the details of any manual procurement process. See the annual cost, how much automation saves, and when it pays off.

Free

Process details


Hours per occurrence 4 h

Total time from start to finish, including waiting and handoffs

Occurrences per year 52

52 = weekly · 12 = monthly · 250 = every working day

People involved 2

Hourly labour cost (fully loaded)
€

Include salary, benefits, overhead. €45 = mid-level procurement professional.

Automation efficiency 70%

70% is conservative for most routine procurement tasks. Supplier classification and invoice coding often reach 90–95%.


Estimated implementation cost € 2,000

Used to calculate payback period and first-year ROI.

Annual savings

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per year, after automation

Current annual cost

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before automation

Hours freed / year

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across all people

Payback period

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First-year ROI

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net of impl. cost

Cost before vs. after automation

Before —
After —

These numbers are a starting point. The real conversation is about which process to automate first and how — that's where the ROI actually comes from.

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Procurement is more than time savings.

Calculate your Total Procurement ROI

Common questions

Directional, not exact. Real savings depend on process complexity, data quality, and how well the automation is implemented. Use it to build a business case — good enough to justify a conversation with your manager, not a budget commitment.

70% is conservative and a safe default for most routine tasks. Invoice coding and supplier classification often hit 90–95%. Contract review typically lands at 60–75% — some human judgment stays. If you're uncertain, keep 70% and update after your first pilot result.

Gross salary + employer contributions (social security, health insurance) + overhead (office space, software, benefits). In the EU, multiply gross salary by 1.3–1.5 to get the real cost. Mid-senior procurement professional: €45/h is a solid estimate for Western Europe. In CZK: 1,100 Kč/h for Czech Republic.

€500–2,000 for simple automation (Power Automate flows, email templates, basic scripts). €2,000–8,000 for ERP or supplier portal integration. €8,000–20,000 for full AI pipelines with custom data processing. For a first project, €2,000 is a reasonable baseline when done properly.

Best candidates: high-frequency, repetitive, with structured outputs. Supplier qualification processing, invoice coding and routing, spend categorization, RFQ generation, and supplier follow-up emails. Poor candidates: negotiation judgment calls, novel supplier assessment, and complex legal decisions.

Methodology: Annual process cost = hours × occurrences × people × hourly rate. Savings = current cost × automation efficiency. Payback = implementation cost ÷ annual savings × 12 months. ROI = (savings − implementation cost) ÷ implementation cost. Actual results vary by process complexity, data quality, and implementation approach.

This calculator estimates the value of automating a process. To measure negotiated savings and get Finance to accept them, read procurement savings tracking: realized vs negotiated savings and how to calculate procurement savings and ROI.

Like what you see? Let's map which process to automate first — built in M365, €0 new licenses.
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