Procurement Performance Monitoring

Monitor procurement performance to cut costs, alleviate risks, and drive continuous process improvement by measuring and analysing vendor and process efficiency



Competency Area



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