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 |
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The number of suppliers of goods per year |
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Number of suppliers be removed per year. |
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Number of new suppliers per year. |
To Find out how Pro-Tess can help with designing, drafting and quantifying your Purchasing KPIs,
please do not hesitate to contact us.