Procurement KPIs are measurement tools that are used to evaluate and monitor the efficiency of an organization’s procurement management. These KPIs help an organization optimize and regulate spending, quality, time, and cost. Moreover, procurement KPIs help businesses to keep pace with their overall process goals, procurement strategies, and business objectives.. By measuring the performance of a procurement process, organizations can find answers to other important questions like:
What does your Organization need to improve ?
How does your company compare with other organizations?
Are we steadily improving or declining?
The following predefined KPIs help you monitor and evaluate the important parts or aspects from the procurement side:
Average Fulfillment Days for a Purchase Order
Average Receipt Variance Days
Goods Return Amount
GRPO Not Invoiced
Inbound Inventory Value
Payables Overdue
Total Payable Amount
Total Purchase Amount
The Average Fulfillment Days for a Purchase Orders KPI monitors the amount of time that elapses between the time a supplier receives a Purchase order and the time when the order is shipped. This KPI is often measured in days. Vendor lead time usually starts with availability confirmation and ordering and ends with the delivery of goods.
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