LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the KPI metrics that companies need to track.
The procurement function forms an integral part of any organization and plays a crucial role in defining its success. It needs to be as effective as possible. Managers must identify the right procurement analytics tools that can help them track results and figure out the areas of improvement. With procurement analytics and the right KPI metrics, companies can easily understand whether the procurement function is delivering the value-add that has been aimed.
At SpendEdge, we understand that measuring the effectiveness of the procurement function is extremely crucial. Therefore, we have highlighted the key KPI metrics that companies need to track.
KPI Metrics that Companies Must Track
Often employees indulge in rogue spending without going through proper approval channels. Companies must work to minimize if not eliminate this maverick spend. Reducing maverick spend by 5 to 10 percent can enable large organizations to save a substantial amount of money in cost savings.
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The end objective of the majority of companies devising a procurement strategy is to attain cost savings. Companies, therefore, must identify whether switching vendors or suppliers can yield better prices. They should also consider the time value of money and the total cost of ownership while ascertaining cost savings. To know how you can attain better cost savings, get in touch with our experts now!
Companies usually enter into contracts with numerous vendors and suppliers during procurement. It becomes imperative for them to track if prices paid are as agreed upon, the parties adhere to service-level agreements signed, and the quality standards. The more a company complies with contracts, the better it is.
To know more about the KPI metrics that companies need to monitor to measure the efficiency of their procurement function, read the complete article here!
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SpendEdge shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions.
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