A
Not sure I am in the right section. However here is my question.
I am in charge with other components of the team in suggesting purchasing KPI's for an automotive components producer.
I am trying to understand how other companies measure Purchasing.
I guess there will be logistic and quality indicators (that we are now discussing with corresponding functions within the organisation), however when it comes to economics I am in difficulty.
Some ideas:
- % savings versus last year average prices
- % savings versus budget price (i.e. for raw material driven purchases)
- % of savings versus project target price
- cost avoidance versus budgeted investment cost
....
Is there any literature on the subject? How do your companies do?
Thanks in advance
I am in charge with other components of the team in suggesting purchasing KPI's for an automotive components producer.
I am trying to understand how other companies measure Purchasing.
I guess there will be logistic and quality indicators (that we are now discussing with corresponding functions within the organisation), however when it comes to economics I am in difficulty.
Some ideas:
- % savings versus last year average prices
- % savings versus budget price (i.e. for raw material driven purchases)
- % of savings versus project target price
- cost avoidance versus budgeted investment cost
....
Is there any literature on the subject? How do your companies do?
Thanks in advance
