I hope that you have enjoyed the article \u201c10 Procurement KPI\u2019s, Part II.\u201d<\/p>\n
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While Part I featured financial KPI\u2019s used by senior management to assess and benchmark the relative contribution of their procurement teams, Part II is more focused on measuring the success of the day-to-day operations of the procurement group. Both types of measurements are necessary, but they are applied differently.<\/p>\n
The financial KPI\u2019s are measured less frequently. They are more concerned with a high-level view of Procurement\u2019s contribution. They are used for leadership of the procurement function.<\/p>\n
The operational KPI\u2019s are measured constantly. They deal more with managing the day-to-day procurement process.<\/p>\n
While \u201cmanagement\u201d tends to have almost a negative connotation when juxtaposed with \u201cleadership,\u201d as discussed in the \u201cAre You CPO Material?\u201d podcast, both management and leadership are necessary for success. In the case of these procurement KPI\u2019s, it is unlikely that the financial KPI\u2019s will show top-notch performance unless solid management is in place to deliver good operational KPI\u2019s.<\/p>\n
Let me close with a reminder that the big announcement that will rock the purchasing certification world will be issued on Wednesday July 1, 2009 right here on this blog. By the way, July 1, 2009 is the fifth anniversary of the SPSM\u00ae<\/sup> Certification.<\/p>\n","protected":false},"excerpt":{"rendered":" I hope that you have enjoyed the article \u201c10 Procurement […]<\/p>\n","protected":false},"author":12,"featured_media":4039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n