GITNUX MARKETDATA REPORT 2023
Must-Know Procurement Kpis [Latest Report]
Highlights: The Most Important Procurement Kpis
- 1. Spend under management
- 2. Cost savings
- 4. Supplier lead time
- 5. Purchase order cycle time
- 6. Supplier performance scorecard
- 7. Contract compliance rate
- 8. On-time delivery rate
- 9. Rate of maverick spend
- 10. Sourcing time
Table of Contents
Procurement Kpis: Our Guide
Navigate the complex world of procurement with our latest report that succinctly discusses must-know Key Performance Indicators (KPIs). Gain valuable insights on how these KPIs can effectively measure and enhance your procurement strategies, ensuring business growth and profitability. Stay ahead of your competitors by understanding the essential role of these KPIs and how to maximize their usage.
Spend Under Management
This KPI measures the percentage of total procurement spend that is actively managed and influenced by the procurement department.
This KPI tracks the amount of money saved through procurement activities such as supplier negotiation, volume discounts, or process improvements.
Procurement Return On Investment
This KPI calculates the financial benefits gained through procurement activities divided by the cost of managing procurement operations.
Supplier Lead Time
This KPI measures the time taken by suppliers to deliver goods or services after receiving an order.
Purchase Order Cycle Time
This KPI tracks the average time it takes to process a purchase order, from initiation to order placement.
Supplier Performance Scorecard
This KPI involves evaluating and scoring suppliers based on their performance in areas such as delivery, quality, cost, and responsiveness.
Contract Compliance Rate
This KPI measures the percentage of total spend that adheres to negotiated contracts.
On-Time Delivery Rate
This KPI tracks the percentage of orders received from suppliers within the agreed-upon delivery timeframe.
Rate Of Maverick Spend
Maverick spend refers to purchases made outside established procurement processes or without proper approval.
This KPI measures the average time it takes for the procurement team to find, select, and engage a supplier for goods and services.
Frequently Asked Questions
What are Procurement KPIs and why are they important?
Which KPIs are essential for effective procurement management?
What role do Procurement KPIs play in supplier relationship management?
How can Procurement KPIs contribute to the overall growth of an organization?
Can Procurement KPIs help in driving sustainability and corporate social responsibility (CSR)?
How we write these articles
We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.