Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What is the most important KPI in a procurement department: 1- Cost saving 2- Continuity of supply 3- Inventory reduction ?

user-image
Question ajoutée par Rami Abdulla Ali Katee , Logistics Officer , ICRC International Committee of the Red Cross
Date de publication: 2013/10/30
Ahmad Ataya
par Ahmad Ataya , Purchasing Manager and Materials Control , Drake and Scull International

All the three KPI's are key factors in Procurement

amer jayyousi
par amer jayyousi , Business Development Consultant , freelance

from my own point of view and personal experience i always try to apply JIT techniques.

so i will always work on maintaining the lowest possible inventory.

inventory has a cost. 

so in answer to your question it is INVENTORY

 

Murali mohan Chalapathy
par Murali mohan Chalapathy , Business Operations Analyst-Assistant Manager , HP Global ebusiness solution (GPSC)

All the three KPI's are key factors in Procurement whereas Cost saving would make great changes in Business and to achieve the cost savings by maintaining minimum required inventory and maximum supply safety.

Dick Chapman
par Dick Chapman , Area Asset Manager North East & Scotland , Northgate Vehicle Hire

Cost saving and Inventory reduction are one of the same KPI's.

In my business we have reduced our inventory to an acceptable level and made a major cost saving.

Managing and monitoring Inventory is an invaluable KPI and one I consider most important.

As a manager make sure you carry out your own inventory percentage checks each week/month, Your own KPI on yourself will also prove interesting and will enable you to pick up trends so much quicker

 

Hope this helps

 

Faisal Ba-aqeel
par Faisal Ba-aqeel , Procurement and Facility Manager - KSA , Delivery Hero

From my little experience, I believe that in Supply Chain (each process, department and procedure is important and completing the others) and they are moving successfully by applying (Total Quality Management - TQM).

I agree with '' Cost Saving ''  as a key one. Because if you achieve it, then you will be able to continue the supply, and inventory reduction.

 

Best Regards,

Shahzad Khan
par Shahzad Khan , Deputy Manager - Human Resources , The Searle Company Limited

Well all03 KPIs are core for Procurement department but our procurement was mainly measured by ; 1: In-time Supply of Goods with minimum price i.e. cost cutting. 2: They have been asked to reduce the cost but non-compromising on quality and supply. 3: Mainly they have been classified into various categories and each has its own Leading Indicator.

MOHAMED EL AMINE MESSAFEUR
par MOHAMED EL AMINE MESSAFEUR , Purcahsing engineer/Analyst tech , GB SONATRACH/ ANADARKO

The good sourcing strategy lead to the cost saving issues  , the good management of stock material lead to the policy of minimizing inventory , healthy financement managing laed to the contunuity supplying .

Syed Hyder
par Syed Hyder , Assistant Manager–Commercial Finance (Inventory & Payables) , Daraz.pk (Ali Baba Venture)

well i consider Inventory reduction since less Inventory would result in reduction in WAREHOUSE cost and will also result in COST SAVING

Bakht Rawan
par Bakht Rawan , Engineering (Q.S/Estimator) MECHANICAL/STEEL STRUCTURE/MEP/PIPING/CIVIL , Najran Company KSA now and DESCON + Heavy Mechanical Complex (HMC) Pakistan previous

As experienced as Deputy Manager Procurement, I find it as Cost saving

Nadeem Asghar
par Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

I believe that Continuity of Supply is the most important KPI for any  Procurement Department. This makes the whole show running and operations of the concern are made possible. Other KPIs are important to make the organization a profit earning one in the long run. But the Continuity of Supply is a matter of life and death for the organization. 

Tamer Nasr
par Tamer Nasr , Contracts Manager , Allied Trading International Ltd.

Dear Sir,

With all consideration and success, the KPI is the Key Performance Indicator Plan. The company is using KPI to reduce and saving cost. The company should consider what is important to purchase? and when? Which is depending on measuring of market performance, company financial wise/limit, expiry date of products or product life in Inventory (if there) and inventory space cost.

In case the company deals with different products, the Procurement Dept. should cooperate with Sales/Marketing Dpt. To know which products do market needed frequently or monthly but other products could be quarterly or every6 months etc….

That also means, at the same time you should consider the continuity of supply and your stock or inventory balanced and up to date with less inventory space to reduce cost.  

Finally, the3 points should be considered in The KPI Plan and it should be studied very well and approved by the Organization Top Management and Procurement Management Dept.

 

Hope i supported you with the right answer and wish you good luck.

More Questions Like This

Avez-vous besoin d'aide pour créer un CV ayant les mots-clés recherchés par les employeurs?