Procurement savings are the reduction in spend achieved through procurement activity, measured against a defined baseline.
Why a baseline is required. Without one, any stated saving is arbitrary and unverifiable.
Distinction. Savings are budget-impacting; cost avoidance prevents an increase without lowering current budget.
Typical magnitude in services. Largest where little or no competition previously existed.
Reporting relevance. Traceability of the baseline matters as much as the size of the saving.