Purchasing KPIs
Title Definition Measurement Target Units Optimise Comments
Delivery on time
Apply this formula to each provider and entire company every month. the number of delivery on time / total delivery.        
Delivery is not enough quantity, (quality)
  total number of deliveries with enough quality/ (quantity) / the number of total deliveries .        
Quantity bought over required
This rate determines the effectiveness of the purchasing order. The rate may be identified in quantity or money. This rate determines the number of products used in actual in comparison with quantity planned.        
Purchasing cost
Compare this with the percentage rate as planned. By value of purchasing / sales value.        
Cost of purchasing units
  Total purchase cost / total sales.        
Transaction cost unit of purchasing

Compare this rate with different goods in order to view transaction costs as high or low (Total cost of purchasing – a total cost of goods) / sales turnover.        
Number of suppliers accounting for 80% of the value of goods
           
The number of suppliers of goods per year
           
Number of suppliers be removed per year.
           
Number of new suppliers per year.
           
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Last Updated: April 11, 2012