How to Effectively Measure a Procurement Organization Sample
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The document discusses how to effectively measure a procurement organization. It outlines key metrics to implement depending on organizational structure, such as supply base statistics, productivity/cost savings, and compliance. Centralized organizations should focus on metrics like number of suppliers, cost per purchase order, and purchase orders without numbers. Decentralized organizations should emphasize supply base statistics and productivity is difficult to measure. The document also defines important metrics and provides examples of effective reporting venues.
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Augmenting your enterprise's spend visibility and redefining your procurement strategies
The Inside-Out and the Outside-In views of procurement that give a complete understanding of your cost management landscape
Erp Solutions
Enterprise resource planning (ERP) systems integrate core business processes across an organization. An ERP system centralizes data to eliminate issues with synchronizing changes between different software applications and reduces security risks. Implementing an ERP system involves defining business processes, identifying gaps between existing and future processes, configuring the system, user training, and go-live. Key ERP modules include finance, manufacturing, supply chain, human resources, and customer relationship management.
Strategic Sourcing & E Procurement
The document discusses implementing lean six sigma principles and eProcurement/strategic sourcing in a heavy machinery industry's MRO environment. It outlines the implementation highlights, including a focus on change management over technology. Benefits achieved included reduced costs, improved compliance, and faster processing times. The strategic sourcing roadmap included spend analysis, supplier evaluation, contracting, and an eProcurement system to streamline the procure-to-pay process. Key success factors included cross-functional involvement, standardization, and benefits realization monitoring.
Erp Solutions(2)
Enterprise resource planning (ERP) systems integrate core business processes across an organization by centralizing data in one place. ERP systems provide advantages like eliminating data synchronization issues between different software applications and reducing security risks. Implementing an ERP system involves defining business processes, identifying gaps between current and future processes, configuring modules, testing, and training users before going live on the new system.
Performance Measurement
The document discusses key concepts in performance measurement and strategic information management. It emphasizes that consistent, accurate data across business areas provides real-time information to evaluate processes, products and services to meet objectives and customer needs. It also discusses leading practices like developing performance indicators reflecting customer needs, using comparative data to improve, and involving all employees in measurement activities.
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How to Effectively Measure a Procurement Organization Sample
- 1. How to Effectively Measure a Procurement Organization
- 7. Organizational Examples Centralized Procurement Decentralized Procurement Purchasing activities Purchasing activities Other functions
- 8. Key Foundational Metrics Regardless of Organization Key Metrics Sub-Metric Examples Supply Base Statistics Number of suppliers – active and inactive (need to define) Proportion of items under contract Productivity/Cost Savings Price per annum comparison Cost per Purchase Order Number of POs issued Total Cost per PO Segregation of Duties Authority limits and proper processes established for requisitions, purchase orders, invoice payments