KPI help!

[tpannell]

Hello All,

I work for a decentralized purchasing organization that it looking to create a full purchasing department where all purchases are routed through purchasing. I have been tasked to create the department, but need to provide documentation on work load and how we can monitor purchasing successfulness.

I have a few KPI’s that I am tracking (savings, # of PO’s, etc), but am in need of some other ideas on how to monitor the performance of purchasing personnel. Does anyone have any KPI’s they are willing to share?

[andyref2]

Don't forget to measure Purchase Price Variance (PPV) as a measure. This could be huge and helps make sure the buyers are drilling down price as well as getting the most bang for the buck.

In addition on time delivery is huge, both "early" and "late shipments" should be tracked.
If your system is adequate, find out how many shortages or late customer shipments can be tracked against Supply Chain.

Good luck!
Andy

[grinkz01]

Don't forget to measure Purchase Price Variance (PPV) as a measure. This could be huge and helps make sure the buyers are drilling down price as well as getting the most bang for the buck.

In addition on time delivery is huge, both "early" and "late shipments" should be tracked.
If your system is adequate, find out how many shortages or late customer shipments can be tracked against Supply Chain.

Good luck!
Andy
1st of all, you must define the purchase organization functional roles, i.e : raw material purchase, indirect, MRO, misc spending, etc because each functions requiring different approach and target. So, KPI can be set based on each goals.

I'm applying this rule as well.