A savings baseline is the reference value fixed before negotiation, against which an achieved saving is measured.
| Baseline | Use case | Reliability |
|---|---|---|
| Prior contract price | Recurring service | High |
| First offer vs. final offer | New requirement with negotiation | Medium |
| Average of all bids | New requirement, multiple suppliers | Medium |
| Internal budget | No market comparison available | Low |
When to fix it. Before negotiation concludes.
Consistency. Use the same logic consistently within a category.