The economic development of a company is to a great extent dependent on the performance of the purchasing department. That’s why purchasing departments have come to be increasingly valued in the course of the last few years. And the importance of making correct, qualified decisions has also been increasing. Purchasing departments have to correctly deploy KPI systems in order to be able to rationally plan decisions and justify them using the right figures. Trends can be recognized early, and an action plan can be implemented in good time. For purchasing departments it means more effective controlling, and for enterprises it means more successful market positioning.
It is frequently the case that existing KPI systems for purchasing do not go far enough. They are insufficiently systematic during set-up, or they are even taken completely out of context. It is the purchasing goals that should determine the KPI system. If the KPI system is going to be used profitably, it is important that the KPIs reflect the purchasing strategy and the purchasing goals.
In addition, KPI systems only function when the relevant figures are made available at every level of hierarchy and for every role. In this case, less is more: It is frequently in the procurement organization that too many KPIs are used, and that these KPIs are often unstructured. For this reason it is important to set up a comprehensive KPI system and to use professional evaluations to achieve transparency in procurement processes.
ESPRiT offers the following services to support its clients with the set-up of KPI systems for purchasing:
- determination and definition of the specific requirements
- reconciling the requirements of specialist departments and IT
- selecting the KPIs relevant to the achievement of goals
- specialized and technical solution conceptualization
- deploying a balanced scorecard for procurement
- carrying out the implementation, e.g. with the help of SAP BI
The ESPRiT experts know the relevant ground rules for the successful set-up of KPI systems for purchasing, and you will find that they are available at every phase of the project to provide you with the advice and actions you require.