Purchasing / Procurement KPI
1. Delivery on time
• Formula: the number of delivery on time / total delivery.
• Apply this formula to each provider and entire company every month.
2. Delivery is not enough quantity, quality
• Formula: with the total number of delivery with enough quality/ quantity / the number of total delivery .
3. Quantity bought over required
• This rate determine the number of products using in actual in comparison with quantity planned.
• This rate determines the effectiveness of the purchasing order.
• The rate may be identified in quantity or money.
5. Purchasing cost
• By value of purchasing / sales value
• Compare this with the percentage rate as planned.
6. Cost of purchasing units
• This rate is total purchase cost / total sales.
7. Transaction cost unit of purchasing
• Formula = (Total cost of purchasing – a total cost of goods) / sales turnover.
• You can compare this rate with different goods in order to view transaction costs a high or low
8. Suppliers rating.
• Number of suppliers accounting for 80% of the value of goods
• The number of suppliers of goods per year
• Number of suppliers be removed per year..
• Number of new suppliers per year..
Author: Davi Ngo, hrvinet.com