ROI Calculator
How much could you save with AI procurement?
Enter your annual procurement spend and the categories you manage to estimate cost savings, time savings, and first-year ROI from AI Buyer. Based on real outcomes from Australian organisations.
Your procurement inputs
Total annual spend on the categories you want to source competitively
How many contract categories you expect to tender or renew this year
Typical range: 10–25%. Use the lower end if categories are already actively managed; higher if contracts have auto-renewed for 2+ years.
Estimated annual cost savings
$180,000
18% of $1,000,000 addressable spend
Time saved
60h
per year across 3 categories
Time value
$5,100
at $85/hr staff cost equivalent
Total first-year value
$185,100
cost savings + time savings combined
Estimates based on typical outcomes from Australian organisations using AI Buyer. Actual savings depend on category type, contract history, and market conditions. Conservative inputs are recommended for internal business cases.
Book a call to discuss your numbersSavings benchmarks by category
These are typical savings ranges achieved through competitive tendering with AI Buyer, based on categories that have been auto-renewed without market testing for 2+ years.
| Category | Typical savings range | Why the savings exist |
|---|---|---|
| Cleaning and facilities services | 15–25% | Highly competitive market; incumbent pricing drifts without tendering |
| Catering and food services | 10–20% | Multiple qualified providers; specifications rarely updated at renewal |
| Security and guarding | 10–18% | Labour cost variations; many providers compete on price |
| Freight and logistics | 10–20% | Market rates fluctuate; competitive tension drives better terms |
| IT and software | 8–20% | Licensing structures complex; alternatives often cheaper than assumed |
| Professional services | 10–25% | Engagement scope creep; rate benchmarking reveals overpricing |
| Office supplies and consumables | 15–30% | Highly fragmented spend; consolidation and competition drives major reductions |
| Medical consumables and PPE | 10–18% | Pricing varies significantly across distributors; bulk volume leverage |
Real example
$3.2M cleaning contract → $2.56M → $540k saved annually
$3.2M
Annual spend
$540k
Savings achieved
20%
Savings rate
6 weeks
Time to outcome
A $200M aged care provider in NSW. Cleaning contract had been auto-renewed for 4 years without market testing. AI Buyer ran the full sourcing event — brief, supplier discovery, RFP, evaluation, board documentation — in 6 weeks. Contract savings: $540k per year, recurring.
Read the full case study →ROI questions answered
How much can I save with AI procurement?
Organisations using AI Buyer typically achieve 15–25% cost savings on categories that are competitively tendered, compared to auto-renewed incumbent contracts. The actual savings depend on how long contracts have been running without market testing, the category type, and how many suppliers are in scope.
What is the ROI of AI procurement software?
For most organisations, the savings from a single sourcing event — typically 15–25% of the category's annual spend — exceed the cost of the platform for the entire year. The ROI compounds as more categories are sourced competitively across the subscription period.
How do you calculate procurement savings?
Procurement savings are calculated as the reduction in annual spend achieved through competitive tendering compared to the previous contract price. AI Buyer's documentation captures this calculation automatically — the incumbent contract value, the new contract value, and the annual saving — for board reporting.
How much time does AI procurement save?
AI Buyer reduces sourcing cycle time by approximately 50%. A procurement process that previously took 6–8 weeks typically completes in 3–4 weeks. RFP drafting alone goes from 2–3 days to under 1 hour. For teams running multiple sourcing events, the cumulative time saving is substantial.
Ready to capture your savings?
Start a sourcing event on AI Buyer today and see real savings on your first category — typically within 6–8 weeks.
Also see: pricing and engagement models