Short answer
Negotiated savings are the reductions procurement agrees with suppliers. Realized savings are the reductions that actually appear in the P&L. The gap comes from invoices at old prices, volumes that differ from plan, and buying that moves off-contract.
Why It Matters to the CFO
Price Slippage
Invoices don’t reflect the new contract price.
Volume Variance
Actual purchases differ from the volumes assumed.
Off-Contract Buying
Spend moves to suppliers outside the new agreement.
How Rivvun Helps
Rivvun runs Detect, Enforce, Prevent, Scale on every transaction, so the issue is fixed at the source.
Questions
Who Should Report Savings?
Finance and procurement should report one number built from transactions.
How Is Realized Saving Calculated?
Baseline price minus invoiced price, multiplied by actual volume, for each contract.
How Much Is at Stake for You?
Enter your revenue and addressable spend to see a first estimate, based on benchmark ranges.