key performance indicators for procurement
TRANSCRIPT
Key Performance Indicators for Procurement
Tom Veit
PROEBIZ Forum, Ostrava, 2016
© SABMiller 2014
Index
KPI Definition
Spend related KPI´s
Financial KPI´s
Operational and E-Sourcing KPI´s
Other KPI´s
© SABMiller 2014
Key Performance Indicators
A set of quantifiable measures that a company uses to compare
performance in terms of meeting their strategic and operational goals
KPI Definition
© SABMiller 2014
Spend related KPI´s used in Procurement
Total spend invoiced spend in the
company in $
© SABMiller 2014
Spend related KPI´s used in Procurement
Addressable spend invoiced spend in the
company in $ we can
potentially touch
as Procurement
© SABMiller 2014
Spend related KPI´s used in Procurement
Spend under control invoiced spend in the
company in $ physically
controlled by
Procurement
© SABMiller 2014
Spend related KPI´s used in Procurement
Spend under mngmt invoiced spend in the of
company in $ physically
and actively managed
by Procurement
© SABMiller 2014
Spend related KPI´s used in Procurement
Spend under contract invoiced spend in the
company in $ physically
and actively managed
and contracted by
Procurement
© SABMiller 2014
Financial KPI´s
Cost Savings
Savings against last year price
© SABMiller 2014
Financial KPI´s
Budget Savings
Savings against actual budget
© SABMiller 2014
Financial KPI´s
Cost avoidance
Outperformance against market or category inflation/trend
© SABMiller 2014
Financial KPI´s
Value enabler
Other improved goods or services with quantifiable value or where is missing
comparable base
© SABMiller 2014
Financial KPI´s
Cash Flow Improvement
Cash injection by incrementally extended payment terms or reduced
inventory
* Or DPO, i.e. Days of Payable Oustanding representing company´s averagy payable period
© SABMiller 2014
Operational KPI´s
# KPI name KPI description
1 PO Automatization PO´s through automated buying channels
2 Supplier consolidation YonY reduction of active supplier base
3 noPO noPAY Compliance with noPO noPay policy
4 ATF PO Compliance with no Retrospective PO´s
5 E-Sourcing Volume and value manage through e-Auction
© SABMiller 2014
Other KPI´s used by Procurement
# KPI name KPI description
1 Savings per $ Captured savings per 1Mio USD (value or %)
2 ROI Captured savings vs. cost of function
3 Spend per FTE Value spend managed by 1 Procurement FTE
4 Active Supplier Base # of active suppliers per 1 Mio USD spend
5 Spend on Catalogue % of indirect spend on catalogs
Thank You