How to measure procurement performance

Procurement performance can be measured by tracking procurement KPIs that align with the overarching procurement and business objectives. Automated procurement solutions can be used to monitor key metrics, including cost savings, supplier lead time, contract compliance, and maverick spend reduction.

Different aspects of procurement performance can be measured using a diverse range of tactics. For instance, an in-depth spend analysis will help demonstrate purchasing efficiency by comparing current purchases with historical data. It can even spot dark purchasing and reveal patterns and trends of purchasing.

Supplier performance KPIs, such as quality, delivery, and compliance metrics, can help evaluate supplier performance appropriately. Analytics modules available on procurement tools will help accurately measure procurement performance with reports on ROI, process efficiency, and more. By conducting regular audits and sharing feedback with stakeholders, strategic alignment of procurement can be cemented.