“We don’t know how to measure what we care about, so we care about what we can measure”
This episode focuses on standard metrics a procurement organization would want to track and measure themselves against.
Metrics discussed in this video are:
- Procurement Cost Reduction
- Procurement ROI
- Cost Avoidance
- Cost Per Purchase Order/Transaction
- Lead Time
- PO Cycle Time
- Spend Under Management
- Number of Suppliers
- Accuracy
- Supplier Quality Data
- Automation
- Diversity
A procurement department can’t be great until it can consistently track, measure, and compare their output to the industry.
Script/Notes for this video (click here)
References/Citations:
- PROCUREMENT KEY PERFORMANCE INDICATORS AND METRICS
- 5 PROVEN WAYS TO MEASURE PROCUREMENT PERFORMANCE
- 11 Essential Procurement KPIs You Can’t Ignore
Photo by Diana Polekhina on Unsplash