Purchasing / Procurement KPI

Purchasing / Procurement KPI


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..

Related documents

Sample KPI (all KPI for marketing, sales, HR, manufacturing …)
KPI ebooks (download free and ref all ebooks related to KPI application).

Author: Davi Ngo, hrvinet.com



3 Responses to “Purchasing / Procurement KPI”

  1. Pankaj Trivedi on July 9th, 2009 at 12:48 am

    Hey, Can anyone explain if these KPIs are meant for Suppliers or Purchase Managers. From description it seems that they are developed for suppliers’ evaluation. Pankaj

  2. May I know more about item 7?

  3. Pushpa raj giree on September 3rd, 2010 at 5:21 am

    It would be better if there are some related questions for the topic?

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