Register now or log in to join your professional community.
When making purchases certain indications needs to be shared with all teams, what are those indications?
Considering cost avoidance and market price development
Now this needs a lot of explanation but in 2 words i would say the contract,
How to start the process to make a contract and how to end the contract.
Also planning is included and smart procuring
There is a difference between productivity of sourcers and performance of procurement as function.
I measure my team's productivity in both qualitative and quantitative terms.
Quantity is easy, it's number of sourcing projects weighted by their complexity executed in an average number of days.
Quality is tricky and it is not just savings, it is overall resourcefulness, grit, communication, expectation management, internal user management, negotiation skills, problem solving, contract quality etc - for qualitative a manager really needs to take interest in his/ her team and how what they do and how.
Getting the quality out of a team while maintaining high turnover is the trick :)
Measuring purchasing performance is important, as the purchasing department plays an ever increasingly important role in the supply chain in an economic downturn.
A reduction in the cost of raw material and services can allow companies to competitively market the price of their finished goods in order to win business. An obvious performance measure of the success of any purchasing department is the amount of money saved by the company.
However, there are a number of performance measurements that businesses can use when they measure purchasing performance. These include:
Number of wright recievied materials (prices - specs - quantities - date) copaiered to total materials requesitions and proposed budget
plus measure effeciency of procurement cycle
You may inlcude time metics on how much does it take to process a procurement cycle. You may put also how was the quality measured through the process until the end.
Savings in negotiations as well could be a KPI to meaures.