Procurement Performance Monitoring
Monitor procurement performance to cut costs, alleviate risks, and drive continuous process improvement by measuring and analysing vendor and process efficiency
Type
Functional
Competency Area
Procurement
Levels
Review procurement performance through information and process data from procurement management systems
Operate the procurement management system to log and extract data
Apply analytics to identify patterns and draw inferences from data extracted
Monitor vendor metrics to track actual delivery against contract terms
Monitor lead times to track the interval between initiation of procurement activities and receipt of items by production
Monitor product- and project-specific data to facilitate inventory and quality management of procured items
Identify deviations against performance criteria
Manage risks of uncertain demand and supply
Analyse performance data to formulate procurement management strategies
Troubleshoot procurement management systems to address data inconsistencies
Evaluate vendors based on performance metrics to ensure compliance with contract terms
Shortlist top performing vendors according to performance evaluations
Evaluate lead times to identify process bottle- necks and sub-optimal performance
Evaluate inventory metrics to predict future procurement needs
Evaluate quality metrics to improve material inspection procedures
Review deviations to investigate causes and suggest mitigation actions
Devise performance criteria to support procurement process optimisation
Devise performance criteria for vendors and establish individual target metrics according to specific contract terms
Devise key performance indicators (KPIs) to evaluate effectiveness and efficiency of the procurement workflows
Coach team members on applying performance criteria to identify deviations
Study impact of procurement processes
and procedures on vendor and process performance
Identify opportunities to introduce cost-cutting, risk mitigation and continuous improvement measures within the scope of procurement
Build evidence-based business cases to review procurement and sourcing strategies and policies in order to optimise performance