In the course of my 15+ years in Sourcing & Procurement, based on my personal experience as well as leveraging market analysts reports, I came to the point of using a set of 14 KPIs to evaluate quickly the maturity of a Sourcing and Procurement function. You’ll find those KPis in the table below as well as Best in Class target and definitions, which I believe complementary to the below previous posts:
- 130 Questions for a Purchasing Performance Assessment
- 8 KPIs to evaluate your Supplier Relationship Management
My top 10+ KPIs:
- Savings on Sourced spend
- Savings vs. total spend
- Spend under influence
- Spend sourced per annum
- Compliance to controled spend
- Operating cost to spend
- Average Spend per Procurement FTE
- Proportion of Strategic +Mgt FTE
- P2P coverage (% spend)
- Stakeholder Satisfaction
- Automated POs
- Reverse Auctions utilisation
- Global Sourcing
Let me know if you see any other KPI that would worth being added to this list.
