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Contract compliance and leakage
Measure spend that bypasses contracts or pays more than contracted prices.
Procurement & vendor managementHow it's worked out
- Compliance = contracted spend ÷ addressable. Leakage = off-price spend + overcharges + uncollected rebates
- Same period and spend cube
NoteLeakage counts spend at non-contracted prices in full; the true loss is the price gap on that spend.
Source: Hackett Group and CIPS procurement benchmarks (contract compliance)
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