Purchasing / Procurement KPI

Purchasing / Procurement KPI

1. Delivery on time

• Formula: the number of delivery on time / total delivery.
• Apply this formula to each provider and entire company every month.

2. Delivery is not enough quantity, quality

• Formula: with the total number of delivery with enough quality/ quantity / the number of total delivery .

3. Quantity bought over required

• This rate determine the number of products using in actual in comparison with quantity planned.
• This rate determines the effectiveness of the purchasing order.
• The rate may be identified in quantity or money.

5. Purchasing cost

• By value of purchasing / sales value
• Compare this with the percentage rate as planned.

6. Cost of purchasing units

• This rate is total purchase cost / total sales.

7. Transaction cost unit of purchasing

• Formula = (Total cost of purchasing – a total cost of goods) / sales turnover.
• You can compare this rate with different goods in order to view transaction costs a high or low

8. Suppliers rating.

• 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..

Sample KPIs courtesy of hrvinet.com