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Maximizing Success: Key Performance Indicators for Buyers
Roger Knocker • Jan 30, 2024
Maximizing Success: Key Performance Indicators for Buyers
Important Aspects of a Buyers Role
In the ever-evolving realm of procurement, the role of a Buyer is pivotal to an organization's success.
To ensure superior performance, it is crucial to establish and monitor Key Performance Indicators
(KPIs) that align with the specific responsibilities of the job. Let's delve into the essential aspects that
demand meticulous measurement for effective buyer performance:
1. Operational Excellence:
- Formalizing pricing structures and discounts to optimize cost-effectiveness.
- Accurate recording and regular updates of purchase orders to minimize discrepancies.
- Defining and adhering to buying processes to eliminate maverick spend.
2. Supplier Management:
- Ensuring on-time and complete delivery from suppliers to sustain operational continuity.
- Building and nurturing strong relationships with suppliers for long-term partnerships.
- Accurate and timely payments to suppliers to foster trust and reliability.
3. Project Implementation and Business Predictability:
- Successfully implementing change through projects measured against budget, time, and scope.
- Monitoring the impact of initiatives on overall business predictability.
- Setting and adhering to planning deadline dates to maintain workflow efficiency.
4. Compliance and Risk Management:
- Strict adherence to processes, standard operating procedures, and organizational policies.
- Managing risks and ensuring social responsibility, compliance, and sustainability.
- Compliance with financial regulations, social responsibility, and environmental sustainability.
5. Innovation and Efficiency:
- Fostering capability development within the team for continuous improvement.
- Evaluating revenue generated from innovative solutions and procurement strategies.
- Implementing process automation for accurate costing and pricing.
- Ensuring accuracy, speed, and efficiency in transactional processing.
As the buyer navigates through these key aspects, the establishment of robust KPIs becomes
imperative to evaluate and enhance their performance continually.
Here are some suggested Key Performance Indicators
- % Suppliers Meeting SLAs
- % Suppliers with Contracts
- % Supplier OTIF (on time and in full)
- % Projects on Time, Scope & Budget (Buyer Initiatives)
- $ Value of Procurement Savings
- % Purchase Price Variance
- % Procurement bought on Contract
- % Policies & Processes up to Date (Buyer Processes)
- % Personal Capability/Training Achieved
- % Master Data Accuracy (Suppliers)
- % Master Data Accuracy (Items)
- % Master Data Accuracy (Components)
- % Master Data Accuracy (Supplier Contracts)
- % Planning deadlines achieved
- % Processes Automated / Systemised (Buyer Processes)
- % Available Rebates Achieved
- % Supplier Returns (Quality)
- % Supplier Invoices Matched first Time
- % Affirmative Procurement Spend (South Africa)
- % Value Maverick Spend
- % Compliance with System Controls
- % Personal Development Plans Completed
- $ Raw Material Cost per Kilogram
- $ Value of Procurement Savings
- $ Raw Material Cost per Kilogram
- % Available Rebates Achieved
- % Procurement bought on Contract
- % Supplier Contract Spend
- % Value Maverick Spend
- % Purchase Price Variance
- % Supplier OTIF (on time and in full)
- % Supplier Returns (Quality)
- % Suppliers with SLAs
- % Available Rebates Achieved
- % Procurement bought on Contract
- % Supplier Contract Spend
- % Value Maverick Spend
- % Purchase Price Variance
- % Supplier OTIF (on time and in full)
- % Supplier Returns (Quality)
- % Suppliers Meeting SLAs
- % Suppliers with SLAs
- % Suppliers with Contracts
- % Supplier Invoices Matched first Time
- % Project Milestones on Time (Buyer Initiatives)
- % Projects on Time, Scope & Budget (Buyer Initiatives)
- % Planning deadlines achieved
- % Policies & Processes up to Date (Buyer Processes)
- % Processes Automated / Systemised (Buyer Processes)
- % Personal Capability/Training Achieved
- % Master Data Accuracy (Items)
- % Master Data Accuracy (Components)
- % Master Data Accuracy (Supplier Contracts)
- % Master Data Accuracy (Suppliers)
- % Reportees Capability/Training Achieved (Buyer Staff)
- % Reportees Personal Objectives Achieved (Buyer Staff)
- % Training Plan Adherence (Buyer Staff)
- % Affirmative Procurement Spend (South Africa)
- % Personal Tasks Overdue
- % Compliance with System Controls
Feel free to sign up for the KPI spreadsheet to access these and additional KPIs in a structured format that offers better context.
Watch the video below to see what you will get and how to use the KPI spreadsheet to take the guesswork out of KPIs
9 Steps to Master Successful Strategy Execution with KPIs - This piece is a detailed step by step guide on how to master strategic execution. Unlock the secrets to successful strategy execution with KPIs. Learn 9 essential steps to master effective strategic execution and achieve your goals. through actionable objectives.
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