Measuring Purchasing Performance
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Measuring Purchasing Performance Course
Introduction:
Measuring purchasing performance is crucial for efficient management and ongoing enhancement of the purchasing function. Evaluating purchasing performance offers valuable feedback to both the purchasing department and top management, enabling them to assess the effectiveness of the organization's purchasing strategies and decision-making processes. The overall performance of an organization is significantly influenced by the purchasing function's ability to contribute to the company's strategies and goals.
Course Objectives:
By the end of the Measuring Purchasing Performance Program participants will be in a position to add value to the organization by being able to:
- prioritize the aspects of the procurement function that should be measured
- Explain the ‘five rights’ of procurement
- Understand the importance of the delivery of procurement activities of the right quality, on time, and to budget and why these facets of the procurement function need to be measured
- Measure quality delivered from the procurement function using both objective and subjective data
- Explain the importance of on-time delivery
- State why the right cost base needs to be attained from the suppliers by the procurement operation
- Recognize why stakeholder satisfaction is critical and needs to be measured
- List the core elements of the risk cycle and identify how each is measured
- Outline the important aspects of measurement in personnel and team management
Who Should Attend?
This Measuring Purchasing Performance Course ideal for:
- Managers and support staff working within a procurement function where supplier selection, supplier management and process control add value to operational performance.
- All procurement teams involved maintaining effective relationships with internal users and suppliers.
Course Outlines:
Measuring Purchasing Performance
- The importance to procurement in internal customer relationships
- Hidden costs of poor relationships
- New types of relationship models in the commercial work
- The importance of ‘Selling the function’
How the Procurement Operation Adds Value to the organization
- Understanding the organizations’ strategies and how they develop competitive advantage
- The link between corporate goals and procurement strategies
- How procurement supports the achievement of the organizations corporate goals
Understanding and Managing Purchasing’ Key Stakeholders
- Identifying the key stakeholders
- Evaluating their view of procurement
- Setting goals that turn internal customers on
- Managing difficult stakeholders
Developing Key Performance Indicators and Service Levels
- Negotiating achievable service levels
- Developing balanced scorecards
- Targets versus balanced scorecards
Some Current Best Practice Methods for Measurement of Performance
- Price and cost performance
- Supply base management
- Supplier performance
- Category management
- Transaction cost measurement
- Process measurement
- Determining the procurement footprint