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Profitia

Analytics

Procurement KPI Systems

We help design and implement a procurement function effectiveness measurement system: metric selection, calculation methodology, thresholds and targets, reporting cadence. A system that connects the operational day-to-day of procurement with management requirements.

An organisation measures what it manages. What it does not measure escapes control regardless of its stated importance.

Problem

Where organisations get stuck

  1. No system for measuring procurement function effectiveness

  2. Difficulty reporting procurement value to management

  3. Undefined performance goals and thresholds for buyers

Approach

How engagements work

  1. 01

    KPI definition workshops with stakeholders

  2. 02

    Methodology design and goal calibration

  3. 03

    System implementation and team training

Results

What changes operationally

  1. 01

    Defined KPI set with calculation methodology

  2. 02

    Goals and thresholds for each metric

  3. 03

    Reporting cadence and report templates

Format

Engagement format
3-6 week project; workshops + documentation + implementation.
Capability area
Analytics

See also

Related areas

Procurement Dashboards

Analytics

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Operating Model Design

Transformation

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Spend Analytics

Analytics

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Let's talk about what this looks like in your organisation.

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