LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the key procurement KPI metrics that companies must be aware of.
Despite cost savings being the end objective of procurement functions, there are several other factors that should be taken into consideration to measure its productivity. Tracking the right procurement KPI metrics could help companies to optimize and regulate spend, time, quality and cost. And to help companies measure the efficiency of their procurement process, our experts have listed out the top procurement metrics that companies must monitor.
SpendEdge offers customized supply market intelligence solutions to help companies across various industries monitor supply market conditions and gain in-depth marketing insights into the key KPI metrics.
Key Procurement KPI Metrics
Procurement KPI metrics #1: Quality
For businesses to ensure sustainability, its crucial to maintain the quality of their products. Evaluating suppliers' individual quality and measuring supplier defect rates could be one of the ways to ensure the quality of materials. Improving purchase order accuracy and addressing compliance issues are some other metrics that need to be evaluated to reduce maverick spend.
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Procurement KPI metrics #2: Delivery
Delivery is one of the key procurement KPI metrics that companies use to measure their efficiency. The lower number of unplanned orders acquired to prevent the shortage of products reflects the efficiency of the procurement function. Supplier efficiency could play a key role in addressing emergency purchases and improving the purchase order cycle time. To obtain necessary insights into the ways to improve the delivery process, get in touch with our experts now!
Procurement KPI metrics #3: Cost savings
The end objective of the majority of procurement functions is to improve cost savings. Lowering the cost per invoice, boosting ROI, and increasing spend under management could impact the profitability of companies. Measuring such procurement KPI metrics could help companies analyze the cost-effectiveness of their procurement investment.
To know more about procurement KPI metrics, read the complete article here!
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