The Economic Performance of Purchasing Departments

Choosing your Purchasing Performance Indicators

‍What you are going to learn:

• Understanding APIs: What is a Purchasing Performance Indicator (KPI in English) and why is it crucial for the success of your business?
• Select the right IPAs: How do you choose the indicators that best fit your needs and goals?
• How to build an operational plan to achieve an annual productivity objective?
• How to set up a dashboard to manage the achievement of productivity objectives (factory, buyer, lever, techno family, etc.)?

Measuring purchasing performance?

• Valuing the contribution of purchasing to business results
• Strengthen the role of purchasing within the company.
• Measuring = Managing your performance = Improving results
  

What are the benefits for Buyers?

To inform performance, this performance measure must be able to be analyzed using the following levers:

• By buyer, this will make it possible to set productivity goals by buyers
• By factory, because if there are several factories in the group, each factory must be able to
  count on the commitment of purchases to keep to the budget for annual earnings.
• By product family, this makes it possible to see the differences in productivity of suppliers for the same family.
• And finally, by means of action, making it possible to also set intermediate objectives

The 5 levers of productivity

• N: Negotiation
• C: Changes in suppliers in Europe (within the eco zone)
• I: changes in suppliers in remote International LCC areas
• R: Relocalization in Europe
• T: Technical changes

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