Measuring Purchasing Performance

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Course duration: 1 Day

Course Running Order

Measuring purchasing performance
· The importance to procurement in internal customer relationships
· Hidden costs of poor relationships
· New types of relationship models in the commercial world
· The importance of ‘Selling the function’

How the procurement operation adds value to the organisation
· Understanding the organisations’ strategies and how they develop competitive advantage
· The link between corporate goals and procurement strategies
· How procurement supports the achievement of the organisations corporate goals

Understanding and managing Purchasing’ key stakeholders
· Identifying the key stakeholders
· Evaluating their view of procurement
· Setting goals that turn internal customers on
· Managing difficult stakeholders

Developing key performance indicators and service levels
· Negotiating achievable service levels
· Developing balanced scorecards
· Targets versus balanced scorecards

Some current best practice methods for measurement of performance
· Price and cost performance
· Supply base management
· Supplier performance
· Category management
· Transaction cost measurement
· Process measurement
· Determining the procurement footprint

Course objectives

This programme is designed to provide staff with a complete understanding of the relationship management and performance measurement techniques available for measuring the contribution procurement makes to the organisation.

Who should attend?

All procurement teams involved maintaining effective relationships with internal users and suppliers.

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