Consider These 3 KPIs for Your Procurement Function

Measure your procurement function according to these performance indicators:

  • Average cost per order

Calculate the total cost of ordering divided by the number of orders.

  • Procurement cost avoidance

Consider your cost savings as a consequence of procurement initiatives. 

  • Spend management 

Dividing your suppliers into two categories: on-contract & off-contract, and reducing the number of vendors who are not under contract. 

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