Procurement Cost Savings
Money saved through procurement work: lower prices, better terms or avoided costs, against a baseline.
Procurement KPIs: cost savings, spend under management, supplier defect rate, purchase order cycle time, maverick spend and contract compliance.
Money saved through procurement work: lower prices, better terms or avoided costs, against a baseline.
The share of total spend that procurement actively manages through sourcing, contracts or catalogues.
The share of spend that bypassed agreed suppliers, contracts or purchasing rules.
The share of spend in contracted categories that went through the contract at the contracted price.
The share of invoices (or spend) backed by a purchase order raised before the purchase.
How long it takes from a purchase request to sending the order to the supplier.
The share of received goods from a supplier that failed inspection or were returned.
The difference between what was paid and the standard or expected price, across purchases.
The share of spend going to the top few suppliers (or a single supplier in a category).
The number of suppliers paid in the last twelve months.
The savings procurement delivers for every unit of its own cost.
The share of purchase orders placed as urgent or expedited.