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Part II – Strategic Footprints – The Holy Trinity of Procurement Performance Metrics | Zycus Procurement Blog

Part II – Strategic Footprints – The Holy Trinity of Procurement Performance Metrics

By Silky Agarwal
In Procurement Talent Management
Sep 17th, 2014

Extending the thread that I left behind in my last blog on the nirvana of procurement performance metrics, here I am to offer my personal take on the second of this triad.  Do, remember, the triad itself is a compilation of TEN must-analyze-metrics by our author, Richard Waugh, VP, Corporate Development at Zycus.  So when we say “three”, we are actually talking of the three key areas of performance measurements that procurement’s got to track.

Analyze this

Just to recap, in the first blog we christened the first of the holy trinity of metrics as ‘Streamlining metrics’.  We also concluded how your ratings on them serve as eligibility criteria of sorts for you to be able to perform well in the second one – The Supplier Management Metrics.

The second one then, you would notice, focuses very clearly upon getting the best out of the choicestThe kind of improvements you should be tracking here are – aggregation of as much spend as possible with as fewer suppliers as possible;  right-size staffing per billion dollar of your spend;  healthier percentage of resources allocated to strategic procurement activities;  heavier resource allocation towards managing the critical-most suppliers;  and top line impact as a consequence of supplier innovation.

For sure the world has begun to ask more of procurement than just documentation and timely invoice processing.  Looking at the metrics then, I can confidently say that this arm of the triangle can be christened the “strategic footprints”which the procurement team leaves on its way to revolutionizing the paradigm of procurement’s influence on business performance.  And the first step of strategy looks to be prioritization.  Talk about staying relevant.  Talk about having a strategic impact. It’s right here in these supplier management metrics!

For further reading on the TEN must-analyze-metrics by Richard Waugh, click on the download below to access the whitepaper- Analyze This – Top 10 metrics to strengthen organizational procurement practices.

Download Whitepaper


About "" Has 26 Posts

Silky works as part of Zycus' thought leadership team. She loves to bring interesting perspectives to the procurement profession, thereby providing food for thought to leaders and visionaries in this profession driven to make a difference to their organizations. She is an MBA in Communications Management, a Graduate in Mass Communications. Her specialization lies in Qualitative aspects of the business and the market needs.

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