WHY YOU SHOULD
MEASURE PROCUREMENT EFFECTIVENESS If you can measure it, you can improve it !
Vital & Important
Impacts
Track & Report
Monitor &
Function
Profitability of
Effectiveness of
Improve
Orgaznizaiton
Procurement
Perfromance
Procurement KPIs and metrics to Measure & Improve Procurement Performance
Purchase Order
No. of
Supplier
Lead
Cycle Time
Suppliers
Ratings
Time
Purchase Cost KPIs
Cost of
Cost
Cost
Purchase Order
Reduction
Avoidance
Procurement
Emergency
ROI
Purchase
Inventory KPIs
Inventory
Inventory
Inventory
Turnover Ratio
Carrying Cost
Aging
Procurement KPIs & metrics Powerful performance management tools Connect procurement teams to key strategic points Provide clear visibility on impact of procurement actions Identify areas of improvement in Procurement process Result in well-focused procurement team Provides Action Points to improve Organization success W W W . F O R C E I N T E L L E C T . C O M