It’s not always easy to keep things smooth sailing in the procurement business. You need to have a 360 understanding of your own operations to then tackle the challenges of your competition. To do this you need to understand the functions of your procurement department and the results it gets out of everything it does, which is why you need to monitor their key performance indicators.
KPIs help you to monitor how your organization is achieving its goals and make improvements where needed. Essentially KPIs act as benchmarks that help you track the functional metrics of your organization and reveal how effectively it’s meeting targets. It also enables the organization to make future projections based on the progress it is currently making.
Here are the 5 KPIs you should be monitoring:
Procurement KPIs are important to understand the financial hold of a business and they reveal useful insights about various operations that help you make faster, smarter and safer decisions in the future.