creating a robust balanced scorecard in procurement
Define Objectives
Select Key Performance Indicators (KPIs)
- Analyze the different aspects of procurement such as supplier management, contract management, cost management, and risk management
- Identify the areas that have the most impact on the overall procurement process and outcomes
- For supplier performance, consider KPIs like on-time delivery, quality of goods/services, and supplier responsiveness
- For cost savings, consider KPIs like cost reduction percentage, cost avoidance, and cost per unit
- For contract compliance, consider KPIs like contract renewal rate, contract deviation rate, and contract milestone achievement
- Review the overall objectives of the procurement function
- Ensure that the selected KPIs directly contribute to the achievement of these objectives
- Consider the strategic goals and priorities of the organization
Use in Manifestly