Creating a Purchased Price Index as a Key Performance Indicator

Author(s):

Bendorf, C.P.M., Robi
Robi Bendorf, C.P.M., Bendorf & Associates, 412-856-4453, robi@bendorf.com

93rd Annual International Conference Proceedings - 2008 - St. Louis, MO

Abstract

When cost reductions are difficult to obtain and prices are going up, how can you show that Supply Management is still doing a great job? Developing and maintaining a Purchased Price Index and comparing it to external indexes is an essential Key Performance Indicator to demonstrate value added.