Analyzing Top KPI Metrics that Every CPO Must Track to Reduce Costs: Request a Free Proposal for In-depth Insights
SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on procurement analytics: 7 KPI metrics you need to track.
Ensuring the efficiency and effectiveness of organizations is one of the primary goals of CPOs. They consistently work to reduce excess spend, lower cost, accelerate procurement cycle and ensure compliance. However, they fail to track if the goals are being accomplished. They must identify top KPI metrics to track results, measure progress, and identify the areas of improvement. Procurement analytics coupled with right KPI metrics can prove to be an effective way for CPOs to determine if they are delivering the value-add that has been planned.
Wondering what are the key metrics that you should keep a track of to measure the performance? Request a free brochure to gain specific insights.
SpendEdge offers customized procurement market intelligence solutions to help companies across various industries make informed business decisions, stay informed, mitigate different types of procurement risks and gain a complete picture of the supply market. Our solutions help companies to transform structural capabilities, improve execution efficiency, and fast-track time to savings.
KPI Metrics That Companies Must Track
Maverick spend
Rogue spending is one of the key issues faced by the majority of organizations. Employees indulge in ?rogue spending' without going through proper approval channels. Bringing down 5 to 10 percent of this spend can translate into millions of dollars for large organizations.
Want to know how spend management strategies can help companies save millions? Reach out to our experts for detailed insights.
Cost savings
The amount of cost-savings attained is primarily the key metric to measure the success of a procurement strategy. Companies must identify potential vendors who could yield better prices. The total cost of ownership should also be taken into consideration while ascertaining cost savings KPI metrics.
Identifying cost saving opportunities require companies to manage commodity price volatility and consolidate spend. Request a free demo and gain instant access to 1000+ procurement reports based on different categories.
Procurement ROI
Companies of today take only a few hours to send a purchase order to the supplier. Purchase order cycle time is a KPI metric that companies consider while measuring how quickly the purchase order is placed. The quicker an organization can place a purchase order, the more efficient and agile it is.
To know more about KPI metrics to consider to improve your procurement analytics, read the complete article here!
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- An Effective Procurement Strategy is a ?Bird in Hand' For Your Business
- Tail Spend Management Helped a Global Consumer Goods Company to Increase Productivity of their Procurement Functions
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