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    2. Purchasing and Procurement KPI's | Print |
      KPI's or Key Performance Indicators are measurement of performance for companies used to evaluate and define how successful it is. Key areas of measuring the Purchasing and Procurement KPI's can be seen below:
       
      1. Delivery on time
      • Formula: the number of delivery on time / total delivery.
      • Apply this formula to each provider and entire company every month.
      2. Delivery is not enough quantity, quality
      • Formula: with the total number of delivery with enough quality/ quantity / the number of total delivery .
      3. Quantity bought over required
      • This rate determine the number of products using in actual in comparison with quantity planned.
      • This rate determines the effectiveness of the purchasing order.
      • The rate may be identified in quantity or money.
      4. Purchasing cost
      • By value of purchasing / sales value
      • Compare this with the percentage rate as planned.
      5.Cost of purchasing units
      • This rate is total purchase cost / total sales.
      6. Transaction cost unit of purchasing
      • Formula = (Total cost of purchasing – a total cost of goods) / sales turnover.
      • You can compare this rate with different goods in order to view transaction costs a high or low
      7. Suppliers rating
      • Number of suppliers accounting for 80% of the value of goods
      • The number of suppliers of goods per year
      • Number of suppliers be removed per year.
      • Number of new suppliers per year.
       

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      A unique consulting offering if anyone knows of another business product like this tweet us.....maybe Harvard should take a leaf from this?
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      On line consulting is the way forward for the small business, never before has there been an affordable option
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