Estimate in 2 minutes the annual operational savings of automating purchase orders, invoices and supplier onboarding, and add the negotiation lever: 2-4% price improvement on spend taken to tender. Using your own operating data: transparent methodology, conservative ranges, no inflated promises.
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Adjust the values to your reality. Default times are conservative averages for manual operations in LATAM; you can edit them in the advanced assumptions. The sourcing module is on by default and estimates separately the 2-4% price improvement on spend taken to tender.
Salary + benefits + overhead. Starting reference: US$ 1,800.
It is usually the largest lever in the business case: 2-4% price improvement on spend taken to tender. The result depends on your category mix, which is why it is shown separately from operational savings.
If you enter it, we calculate the estimated payback.
No black boxes. These are the exact formulas the calculator uses:
PO savings = POs/month × 12 × (manual minutes − automated minutes) ÷ 60 × fully loaded hourly cost.
Invoice savings = invoices/month × 12 × (manual − automated minutes) ÷ 60 × hourly cost, plus the reduction in exception rework (from 8% to 2%, 30 min per exception).
Onboarding savings = suppliers/year × (manual hours − hours with a self-service portal) × hourly cost.
Hourly cost = fully loaded monthly cost ÷ 160 effective hours.
Credibility safeguard: total operational savings are capped at 40% of the annual cost of the team you entered, and the conservative range applies an additional 25% discount.
Sourcing potential (optional module) = annual spend you take to tender × 2-4% price improvement on spend taken to tender. It is shown separately from operational savings and is not subject to the 40% cap.
External reference: McKinsey estimates that agentic AI can make the procurement function 25% to 40% more efficient. See the McKinsey study
The ROI of procurement automation does not come from a feature list: it comes from your volumes (purchase orders, invoices, suppliers), your process times and your labor cost. This procurement ROI calculator turns that data into an annual savings range you can defend in front of a CFO.
Most procurement teams in Latin America still run manual processes over email and spreadsheets: approving a PO takes days, every invoice needs manual verification and onboarding a supplier consumes hours of documentation back-and-forth. That hidden cost is exactly what this model quantifies.
The result serves three purposes: prioritize which process to automate first, justify the investment with conservative ranges, and compare scenarios by changing the assumptions. And if you want to validate the case with your real data, request a demo.
Six editable sheets —Dashboard, Variables, Actividades Manuales (manual activities), Escenarios (scenarios), Plan de Acción (action plan) and Instrucciones (instructions)— with 70 formulas and three adoption scenarios, to work the operational savings of your business case with your team. Sourcing potential and payback are calculated here on the page. Leave your corporate email and download it instantly.
By multiplying the annual transaction volume (purchase orders, invoices, onboardings) by the time saved on each when automating, and valuing those hours at the team's fully loaded labor cost. This calculator uses exactly that logic with editable assumptions, and applies a cap of 40% of team cost as a credibility safeguard.
McKinsey estimates that agentic AI can make the procurement function 25% to 40% more efficient. In practice it depends on the starting point: highly manual operations (email + spreadsheets) capture more. That is why the calculator shows a conservative → expected range instead of a single figure.
Yes, as an optional, separate module: 2-4% price improvement on spend taken to tender. It is the largest lever in the business case, but it depends on each company's category mix and sourcing discipline, which is why we prefer not to blend it with operational savings, which are more predictable.
No. It is an indicative estimate with a transparent methodology, designed to help you build your internal business case. The real case is validated with your data and processes in a demo, where you can also adjust the assumptions with our team.
Procurement teams evaluating this kind of automation typically work with a 6 to 18-month return horizon, and in projects with high invoice and supplier-onboarding volumes the estimated payback sits closer to 11 to 12 months. Payback depends on three things: transaction volume (more orders and invoices, faster return), the team's labor cost, and how manual the starting point is. The calculator estimates your own payback if you enter the planned annual investment.
When an organization moves from quoting by email to a structured process with several suppliers competing on the same terms, the reference is 2-4% price improvement on spend taken to tender. It is a market reference range that EGIXIA uses in its business cases; it depends on the category mix —in categories with few suppliers the margin is smaller— which is why the calculator shows it as an optional module, separate from operational savings, which are more predictable.
Yes, that is precisely its purpose. The Excel version of the model is editable and ships with six sheets —Dashboard, Variables, Actividades Manuales (manual activities), Escenarios (scenarios), Plan de Acción (action plan) and Instrucciones (instructions)— with 70 formulas and three adoption scenarios (conservative, base and ambitious) over eight procurement activities: there you adjust the assumptions in front of finance and support hours freed, operating cost and potential monthly and annual savings. Sourcing potential and payback are not in the file: those two are estimated by the calculator on this page, by entering the spend you take to tender and the planned annual investment. If you need help building the presentation with your real data, our team does it with you in a session.
In a 30-minute demo we review your volumes, processes and ERP, and adjust the model to your operation. No commitment.
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