Measuring Purchasing Performance

Course Objectives

This programme is designed to provide staff with a complete understanding of the relationship management and performance measurement techniques available for measuring the contribution procurement makes to the organisation.

Course Contents

Measuring purchasing performance
The importance to procurement in internal customer relationships
Hidden costs of poor relationships
New types of relationship models in the commercial world
The importance of ‘selling the function’
 
How the procurement operation adds value to the organisation
Understanding the organisations’ strategies and how they develop competitive advantage
The link between corporate goals and procurement strategies
How procurement supports the achievement of the organisations corporate goals
 
Understanding and managing purchasing’ key stakeholders
Identifying the key stakeholders
Evaluating their view of procurement
Setting goals that turn internal customers on
Managing difficult stakeholders
 
Developing key performance indicators and service levels
Negotiating achievable service levels
Developing balanced scorecards
Targets versus balanced scorecards
 
Some current best practice methods for measurement of performance
Price and cost performance
Supply base management
Supplier performance
Category management
Transaction cost measurement
Process measurement
Determining the procurement footprint

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Who Should Attend

All procurement teams involved maintaining effective relationships with internal users and suppliers.

Duration

A 1-day double manned course.
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