Organizations that have implemented supply base management programs often reap a 5 to 10 percent reduction in the spend base addressed. Depending on how aggressively a buy is managed at the time of program implementation, savings of 15 to 2.0 percent are not unrealistic. By putting measurements and processes in place, organizations can realize a 3 to 5 percent reduction on a year-over-year basis. These savings in turn can lead to a decrease in COGS, working capital and, potentially, SG&A. Improvements in operational performance yield additional savings as well as enhanced asset utilization. These programs yield powerful results and can be equally effective for both direct and indirect spending.