Do suppliers react flexibly and as requested to purchase requests? How long does the ordering process take on average? Which orders can be used to achieve savings through collective orders? What is the extra spending due to maverick buying? Are the invoice conditions as agreed with the supplier in the contract? How many discountable invoices are paid without discount deduction?
The Procurement area must deal with these and many more questions on a daily basis. The goal is to reduce long-term costs, achieve potential savings and make procurement processes more efficient. Meaningful metrics and KPIs are an important element in realizing these goals and supporting procurement organizations in their operational and strategic tasks.
Do you have all metrics and KPIs relevant to your decision to exploit the full potential of your purchase?