Tip: Don’t Let CPI Hide Your Savings
When you’re presenting cost savings to the Finance team or senior management, for next year, make sure the CPI (Consumer Price Index) increase isn’t quietly cancelling out your hard work. Here’s what often happens: You launch a $500K transport cost-saving initiative, and it works. But at the same time, the CPI adjustment hits your freight rates, say 5%. On paper, the Finance team sees the new spend after CPI and might think the “savings” never actually materialized. In reality, you did save the money, but it’s being masked by inflationary movement. So when you’re presenting your forecast or post-implementation results: - Separate out CPI increases from your cost-savings calculations. - Show both the “raw” savings and the “CPI-adjusted” savings view. - Make it clear what portion of spend change is performance-driven vs. inflation-driven. That way, Finance doesn’t unknowingly deduct your win and your $500K saving still gets the recognition it deserves. As an immediate, if youre presenting a 26', verify with the finance team if this is, or is not taken into consideration.