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A. Identify payment schedules and requests
B. Identify performance successes or failures
C. Identify progress with respect to contract statement of work
D. Identify contract non-compliance
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With the choice - A .
A. Identify payment schedules and requests
I'm really confused all answer can be right!
if some one know more please clarify the answer with more detail!
Determining performance appraisal criteria for any job can be challenging. This is particularly true with buyers, since you cannot set simple quotas as you could for salespeople. However, a few simple guidelines will help you establish criteria that are relevant and fair. The key is to tie performance criteria to metrics that are specific, within the buyer's control and relevant to both the buyer's job description and the overall organizational goals. In other words, buyers should be measured on the things they can actually do to improve the overall performance of the business.
Starting From Scratch Step 1Create a list of your organization's top-level goals. These should include metrics like days of inventory, cash cycle, gross profit margin, revenue and selling and administrative costs.
Step 2List the specific ways in which a buyer can positively impact the organization's broader goals. For instance, a buyer can improve cash cycle by negotiating longer payment terms with suppliers or days of inventory by dual-sourcing an item to improve on-time delivery.
Step 3Prioritize that list in order of importance to the company and return on investment. For instance, if improving cash cycle is especially important to the corporation right now, and a large number of your suppliers are only offering 30-day payment terms, there is a large potential benefit to be gained from negotiating longer payment terms with your suppliers.
Step 4Add service to internal customers as necessary. Some buyer activities do not directly affect the company's bottom line but are essential inputs to other departments' abilities to meet their goals.
Existing Buyer Positions Step 1Read through the job description for the buyer, and identify the key expectations it sets for the position. Ideally, these will include expectations for pricing, on-time delivery, resolution of defective or incorrect deliveries, and service of internal customers, like the production line and the marketing team.
Step 2Match those key responsibilities to the metrics or objectives of your department. The criteria that the buyer is measured against should directly affect your department's success in meeting its objectives. For instance, if one of your department's goals is to reduce on-hand inventory, the buyer's ability to negotiate smaller minimum orders with suppliers would be a relevant performance criteria.
Step 3Review your organization's corporate goals, and trace your department objectives to these goals. This should create a clear link between the essential activities a buyer performs, your department objectives and the entire company's goals. The buyer should be able to clearly understand how his actions affect his performance review, your department as a whole and the entire company.
Step 4Establish specific milestones based on each category of accountability. For example, suppose your corporate goal of increased profitability drives your department goal of decreasing material costs by 5 percent. You should establish a specific percentage, such as 5 percent, by which the buyer is expected to decrease the price of the items she purchases.