Procurement: Setting Goals & Measuring Success
How to Find the Right Measures
As any successful procurement professional knows, procurement is not simply about getting the cheapest deal or cutting costs.
Each purchasing decision carries a set of requirements that feeds into a larger goal.
For example, if your customer service department needs new computers, they will likely have a list of needs like ability to handle large data, size requirements, and yes- budget constraints.
So how can you measure your success and illustrate to others your success?
Be your own champion.
Take the lead in communicating success. By taking a proactive approach to measuring your success, others will see the procurement team has something to be proud of.
If you wait until your success is questioned, you may find it is too late. Take charge of your situation.
Start with goals.
You cannot measure success if you don’t have a goal. Work with your leadership team to create goals that help support the company’s vision.
The wrong goals will lead your company away from what it really wants to accomplish- not just saving money, but whatever it is that makes your company more valuable as an organization.
Research standard Key Performance Indicators (KPIs).
Seek out the standard measurements for your industry and see which might work for you. Just copying what others do won’t necessarily help you reach your goals, but once you have a sight of what you want to achieve you can start to build metrics to get there.
For procurement technology KPIs, you can check out: Procurement KPIs: Measurement Web Series.
Get the tools to measure your KPIs.
Modern procurement platforms offer powerful tools that allow you to measure your progress in real-time.
That means you can see today’s spend right now. If you have to wait until the end of the month or quarter to see your measurements, you cannot change what happens until it is too late.
Tools like Vroozi’s Data Analytics show you exactly what you need immediately.
By using the instant feedback of a cloud procurement platform, you can measure your success against the goals you made to help your company reach its vision. As a procurement professional, you have a major impact on your company.