Metrics & Economics

Cost Avoidance

Cost avoidance is an averted cost increase — one that would have occurred without the procurement action.

Examples. Preventing an announced price increase, holding a price level, additional services at no extra cost.

Why the distinction matters. Doesn't lower current budget.

The evidence problem. Rests on an assumption about what would otherwise have happened — must be documented.

Related terms

Book a meeting

See what apadua can do for your team

In 30 minutes, we’ll show you how apadua fits your sourcing processes – no strings attached.

Get to know us first

Meet the people behind apadua and connect with us on LinkedIn.

Meet the team →