In the previous blog we discussed the evolution of procurement from a clerical purchasing function to a strategic growth partner. We also shed light on the growing importance of procurement and the need to track and measure procurement performance and align it with organizational objectives.
In this post we will discuss what measures can be adopted to keep track of your procurement performance.
Till the trade was simple, supply chain mostly restricted to a particular geography, product/service options to customers fewer and the customer base confined, managing procurement function was relatively simple. However, with trade liberalization, advent of technology and easy availability of information the boundaries have dissolved and world has started becoming flat.
This has translated into wider customer base, more options to customers, more competition and thus longer and complex supply chain. Procurement has to be dealt with a new approach which allows better visibility into organization’s spending. This is where technology can be leveraged, to not only improve procurement performance but to also monitor performance and track the savings it generates to financial statements of the organization.
Measuring and tracking procurement performance in an evolved way would help the organization with
Organizations can ensure following measures to have a better procurement performance tracking system in place;
In the coming two blog posts we will discuss the process, enabled by technology to map procurement performance.
For further reading, click on the download button to access the whitepaper – “Making Procurement Performance Count”[symple_button color=”blue” url=”http://www.zycus.com/campaign/Making_Procurement_Performance_Count.php/WebBlogL87943″ title=”Visit Site” target=”blank” border_radius=””]Download Whitepaper[/symple_button]