This document discusses 10 key performance indicators (KPIs) that are widely used to measure procurement organization performance. The KPIs include total cost savings, quality, delivery, cost avoidance, implemented cost reduction savings, procurement cycle time, percentage of spend from top suppliers, procurement ROI, managed spend as a percentage of total spend, and contract compliance. Regular measurement of these KPIs promotes continuous improvement, benchmarking against best practices, and identification of opportunities within the supply base.
"You can download this product from SlideTeam.net"
Use content-ready Procurement PowerPoint Presentation Slides to execute the process of acquiring goods and services from an external source via tendering. Meet customers & stakeholders demands, analyse processes, optimize strategies and ultimately reduce procurement costs. Incorporate professionally designed procurement PowerPoint PPT templates to transform your business which bring you benefits. This deck comprises of templates such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, and more. Use this presentation for purchase planning, value analysis, financing, price negotiation, inventory control and stores, standards determination, etc. These procurement PowerPoint templates are completely customizable. Edit color, text, icon and font size as per your requirement. Add or remove content, if needed. Grab ready-to-use procurement PowerPoint complete presentation to go step by step process of acquiring goods and services from external suppliers. Good expression is guaranteed with our Procurement Powerpoint Presentation Slides. Communication becomes explicitly clear. https://bit.ly/3oihfzw
Development of a procurement strategy and making the aquisition and purchasing choice by Derek Hendrikz. passive, independent, supportive and integrative strategies. Outsourcing vs. insourcing and bottle neck, critical, routine and leverage sourcing discussed.
www.derekhendrikz.com
"You can download this product from SlideTeam.net"
Use content-ready Procurement PowerPoint Presentation Slides to execute the process of acquiring goods and services from an external source via tendering. Meet customers & stakeholders demands, analyse processes, optimize strategies and ultimately reduce procurement costs. Incorporate professionally designed procurement PowerPoint PPT templates to transform your business which bring you benefits. This deck comprises of templates such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, and more. Use this presentation for purchase planning, value analysis, financing, price negotiation, inventory control and stores, standards determination, etc. These procurement PowerPoint templates are completely customizable. Edit color, text, icon and font size as per your requirement. Add or remove content, if needed. Grab ready-to-use procurement PowerPoint complete presentation to go step by step process of acquiring goods and services from external suppliers. Good expression is guaranteed with our Procurement Powerpoint Presentation Slides. Communication becomes explicitly clear. https://bit.ly/3oihfzw
Development of a procurement strategy and making the aquisition and purchasing choice by Derek Hendrikz. passive, independent, supportive and integrative strategies. Outsourcing vs. insourcing and bottle neck, critical, routine and leverage sourcing discussed.
www.derekhendrikz.com
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING pter 007 instru...Zamri Yahya
• Purchasing Procedure
• System Contracting
• E-Procurement
• Reverse Auctions
• Electric Data Interchange (EDI) and Purchasing
Radio Frequency Identifications (RFID)
VENDOR EVALUATION - RESOURCE MANAGEMENTVismay Shah
This is the PowerPoint presentation for the Vendor Evaluation Topic in the subject of Resource Management. Resource Management is taught as a subject in various fields of engineering and management. I & my group mates have prepared this ppt as a part of our course curriculum in M.tech Construction Engineering & Management.
The presentation is about procurement and sourcing strategies. The process, types, importance and goals of procurement and sourcing have been discussed briefly.
Amidst growing pressure to streamline business processes and enhance operational performance, complete or incremental optimization across the sourcing life-cycle has become the need of the hour.
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING pter 007 instru...Zamri Yahya
• Purchasing Procedure
• System Contracting
• E-Procurement
• Reverse Auctions
• Electric Data Interchange (EDI) and Purchasing
Radio Frequency Identifications (RFID)
VENDOR EVALUATION - RESOURCE MANAGEMENTVismay Shah
This is the PowerPoint presentation for the Vendor Evaluation Topic in the subject of Resource Management. Resource Management is taught as a subject in various fields of engineering and management. I & my group mates have prepared this ppt as a part of our course curriculum in M.tech Construction Engineering & Management.
The presentation is about procurement and sourcing strategies. The process, types, importance and goals of procurement and sourcing have been discussed briefly.
Amidst growing pressure to streamline business processes and enhance operational performance, complete or incremental optimization across the sourcing life-cycle has become the need of the hour.
10 Ways To Improve Your Purchasing DepartmentKeith Taylor
10 ways to improve your purchasing department. Includes tips from a purchasing and materials management professional with over 22 years experience. www.lbsi.com
To view recording: https://youtu.be/GP7rtDLAYEg or watch the video at end of the slide
The Balanced Scorecard Institute and partner Informa Middle East invite you to participate in our upcoming complimentary webinar, ‘KPI Best Practices’, which will discuss the relationship between strategy execution and KPIs.
Developing meaningful KPIs to measure strategy execution is both an art and a science, involving a deep understanding of what to measure, how to measure, how to analyze performance information, how to report and clearly inform others regarding desired results and performance, and how to use the information to make better decisions.
This webinar introduces one of the main topics at our upcoming Saudi KPI for Business Strategy & Transformation workshop.
Join the Balanced Scorecard Institute's Howard Rohm, Co-Founder and President, and Suzy Nisbet, Senior Associate and Consultant, as they discuss developing strategic, operational, project, and organizational capacity KPIs, aligning KPIs to strategy, measuring intangible goals, streamlining measurement and reporting processes, and creating derivative KPIs for employees at all organizational levels.
Sharing best KPI practices from their worldwide client experience, this 40-minute webinar (followed by a 20-minute Q&A session) will provide the knowledge and insight to better understand the relationship between strategy and KPI's.
Webinar participants will learn how to:
• Improve managers' and employees' perception of the value and importance of measuring performance
• Lift the skill level of managers and employees in selecting meaningful measures and using those measures to make better informed decisions
• Use KPIs to build individual and collective accountability for results
The Top 5 Performance Management ToolsBernard Marr
Summary of a report that looked at the state-of-the-art in performance management. It identifies the top 5 tools used today to manage performance and adds some words of advice.
How does one decide if a Metric qualifies as a Key Performance Indicator? and if so, what are the characteristics of an excellent online marketing KPI?
Contoh Slide Presentasi Key Performance Indicators (KPI) untuk pemerintahan tingkat satuan kerja non vertikal (SNVT), Kementerian Pekerjaan Umum dan Perumahan Rakyat
Daftar KPI yang lengkap untuk beragam bidang : KPI marketing, KPI SDM/HR, KPI finance, KPI IT dan KPI produksi. Contoh Key performance indicators yang bagus.
Top 10 most important manufacturing performance indicators in 2019MRPeasy
mrpeasy.com
In manufacturing, there are many outside influencing factors, tracking the performance of an operation with KPI metrics means the difference between success and failure. Here are the most important manufacturing performance indicators.
In this presentation we allocated a full day seminar every quarter to teach 1st and 2nd Year Associates the fundamental approach, processes and tools and techniques to begin working with their engagement team on their first Spend Reduction project.
At Monitor, as McKinsey or BCG we may seem to produce a lot of tools and guidelines that we expect staff to follow. But keep in mind with over 500 staff dedicated "just" to coming up with the new breakthrough model, approach, theory, tool or techniue we see it as a small price t pay to maintain our edge in a sector where superior client problem solving abilties and the latest breakthrough thinking are waht keeps us off the streets.
2. How does your procurement
organization measure up?
• To accurately determine how your
procurement organization is performing are
the key metrics used to measure and
benchmark supply management efficiency and
effectiveness.
3. Top 10 KPI’s used widely used by
successful procurement organizations.
• Total cost savings
• Quality
• Delivery
• Cost avoidance
• Implemented cost reduction savings
• Procurement Cycle Time
• Percentage of suppliers accounting for 80% of the spend
• Procurement ROI
• Managed spend as percentage of total spend
• Contract compliance
4. Total Cost
• The aggregate amount of money procurement
saves by reducing the total cost of ownership
(TCO) from one year to the next excluding
changes in volume. This measures the
purchasing departments contribution to the
financial success of the organization.
• These are actions that can be directly traced
back to the P&L (Hard savings)
5. Quality
• Supply base has demonstrated continuous
improvement in defect rates. This can be
achieved by identifying metrics such as
defects per million (DPM) that effectively
measure the progress being made towards
“betterment of quality”.
6. Delivery
• This KPI measures how well the procurement
department gets what the organization needs
when it needs it.
– Delivery to promise date
– Delivery to (original) schedule date
– Delivery to rescheduled dates
Measured as % of on time total shipments when
volume is large enough.
7. Cost Avoidance
• Cost avoidance is a cost reduction that results
from a spend that is lower than the spend that
would have otherwise been required if the
cost avoidance exercise had not been
undertaken.
– Examples: delaying a supplier’s price increase,
additional services such as training at no cost or
long term price protection provisions.
These ‘soft costs’ turn into hard costs over time.
8. Implemented cost reduction
savings
• As opposed to ‘identified’ or ‘pipeline’ cost
reductions, this KPI measures negotiated
savings that have actually been realized and
implemented by the organization.
– Resourcing a component or supplier after the part
has been qualified and put into production
– Backleveraging a supplier once the contract has
been changed
9. Procurement Cycle Time
• The average time it takes between requisition submission and
purchase order placement is one measure of procurement
cycle time.
• Another cycle time that can be measured is the time it takes
from the beginning of a sourcing process to the time that a
contract is signed.
10. Percent of active suppliers accounting for
80% of total spend
• This KPI measures the current state of supplier
consolidation and activity within supply base
from the previous year.
– New product introductions may impact this metric
– Changes in sales within the product portfolio may
have an effect as well
– This KPI drives efficiencies within the procurement
organization and drives down costs/PO
11. Procurement ROI
• This KPI measures the procurement
department’s cost effectiveness. This is
measured by comparing implemented cost
savings to the procurement department’s
operating budget.
12. Managed Spend as a percentage of Total Spend
• Managed spend is the amount of spend that
the purchasing department influences throuth
the strategic sourcing process. Total spend is
the amount of money organization spend on
products and services each year. This does not
include labor cost.
• Spend under management (SOM) is as high as
85% in companies with best in class strategic
sourcing organizations.
13. Contract Compliance
• This KPI measures compliance to contract
service level agreements (SLA’s), contract
terms and conditions, and pricing agreements.
This metric is used to benchmark suppliers
compliance to the standards they have
negotiated.
14. Summary
• Capturing baseline KPI information within the
supply base promotes ongoing supplier
compliance and identifies areas of
opportunity
• Actively measuring these top 10 KPI’s is the
key to continuous improvement across an
organization’s supply base.
• Benchmarking KPI’s against other best in class
procurement organizations creates
procurement goals and targets.