# Analytics calculations

Within Analytics, key calculations, such as savings metrics, response rates, and supplier engagement data, are used to provide insights into your events.

### Awarded Savings <a href="#awarded" id="awarded"></a>

Displays the sum of awarded savings for your request for quote events. This value is calculated at the event level as [baseline spend](#baseline) - awarded bid. This calculation only includes values where you saved money. **Awarded savings example**

For the following example event, there are three awarded line items. The awarded savings calculation highlights saving. When an item is equal to or more than the baseline spend, it is zeroed in the calculation; we don't include negative values. Because awarded savings is calculated on the event level, there is a negative savings and the event does not include savings overall (zeroed).

| #            | Title    | Item Baseline Spend | Item Awarded Amount (USD) | Savings (USD) | Savings zeroed (USD) |
| ------------ | -------- | ------------------- | ------------------------- | ------------- | -------------------- |
| 1            | Monitor  | $500                | $500                      | $0            | $0                   |
| 2            | Laptop   | $1500               | $2500                     | -$1000        | $0                   |
| 3            | Keyboard | $150                | $50                       | $100          | $100                 |
| Event total: | $2150    | $3050               | -$900                     | $0            |                      |

**Event vs. line item savings**

While savings can be calculated on the event or line item level, the Fairmarkit standard dashboards use the event level calculation, which means we look at the lowest total response from a single supplier to find savings.

For comparison, line item level savings are calculated for each line item and typically show higher savings. However, this method doesn't allow you to see how the lowest full supplier response compares to other responses.

| #                   | Baseline Spend | Quote 1 | Quote 2 | Quote 3 | Line savings |
| ------------------- | -------------- | ------- | ------- | ------- | ------------ |
| 1                   | $100           | $80     | $90     | $110    | $20          |
| 2                   | $100           | $110    | $100    | $50     | $50          |
| 3                   | $100           | $50     | $90     | $75     | $50          |
| Total Bid Amount    | $300           | $240    | $280    | $235    |              |
| Event level savings |                |         |         | $65     |              |
| Line level savings  |                |         |         |         | $120         |

### Awarded Savings % <a href="#awardedsavings1" id="awardedsavings1"></a>

Displays the percent of awarded savings for your events. This value is calculated as [Awarded Savings](#awarded) / [Baseline Spend USD](#baseline).

### Baseline spend <a href="#baseline" id="baseline"></a>

Displays your baseline spend on an item, service, category, or in general in Fairmarkit for a specified period of time.

When a Benchmark value is provided, Baseline Spend will reflect the Benchmark value. The Benchmark value may be imported from or calculated based on values in your purchasing application or manually entered on an event.

When a benchmark isn't provided, Baseline Spend will be calculated as the average of supplier responses, excluding any outliers.

### Cost Avoidance <a href="#costavoid" id="costavoid"></a>

For awarded request for quote events, if the Benchmark was not entered, this value is calculated as the a*verage of bid unit prices - awarded bid unit price*. If a Benchmark was entered, this value will be $0.00.

### Cost Savings <a href="#costsavings" id="costsavings"></a>

For awarded request for quote events, if the Benchmark is greater than 0, this value calculates as (*Benchmark - minimum unit price awarded*) \* quantity. If a Benchmark was not entered, this value will be $0.00.

### Identified Savings <a href="#identifi" id="identifi"></a>

Displays the sum of identified, potential savings for your opened events. Identified savings is calculated at the line item level as [Baseline](#baseline) - Lowest Bid. This value doesn't include alternative items. **Identified savings example**

| <p>Item<br><br></p> | <p>Supplier 1<br><br></p> | Supplier 2 | Supplier 3 | <p>Average proposal<br>(baseline spend)</p> | Lowest | Identified Savings |
| ------------------- | ------------------------- | ---------- | ---------- | ------------------------------------------- | ------ | ------------------ |
| #123                | $100                      | $75        | $200       | $125                                        | $75    | $50                |
| #456                | $225                      | $230       | $205       | $220                                        | $205   | $15                |
| #789                | $325                      | ---        | ---        | $325                                        | $325   | $0                 |

### Identified Savings % <a href="#identifiedsavings1" id="identifiedsavings1"></a>

Displays the percent of identified, potential savings for your events. This value is calculated as [Identified Savings](#identifi) / [Baseline Spend USD](#baseline).

### Missed Opportunity <a href="#missedopportunity" id="missedopportunity"></a>

Displays the amount of missed opportunity. This value is calculated as [Identified Savings](#identifi) - ([Cost Savings](#costsavings) + [Cost Avoidance](#costavoid)).

### Missed Savings <a href="#missedsavings" id="missedsavings"></a>

Displays the amount of missed savings. This value is calculated as [Identified Savings](#identifi) - [Awarded Savings](#awarded).

### Response Rate <a href="#responserate" id="responserate"></a>

Displays a calculated response rate in Fairmarkit. This value is calculated as number of *supplier responses submitted / total event invitations.*

### % of Savings <a href="#ofsavings" id="ofsavings"></a>

Displays the buyer's percentage of savings across all listed buyers. This value is calculated as [Awarded Savings](#awarded) (for a buyer) / Total [Awarded Savings](#awarded) (across all displayed buyers).

### % RFQs Opened <a href="#rfqsopened" id="rfqsopened"></a>

Displays the percentage of request for quote events that have been opened. This value is calculated as *Total Opened RFQs / Total RFQs*.

### % Single-sourced <a href="#singlesourced" id="singlesourced"></a>

Displays the percentage of request for quote events where only one supplier was invited. This value is calculated as *Single-sourced RFQs / Total Opened RFQs.*


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