Measuring Purchasing Performance

Measuring Purchasing Performance

Monday 28 June 2021

  • Duration: One Week
  • City: Madrid 
  • Fees: Classroom: 4300 GBP / Online: 1975 GBP



Measuring Purchasing performance is essential for effective management and continued improvement of the purchasing function. Purchasing evaluation provides vital feedback to the purchasing department as well as top managements for assessing the effectiveness of an organization’s purchasing strategies and decision-making processes. Overall performance of an organization is strongly affected by how well the purchasing function can contribute to the firm’s strategies and goals..

This Five-day programme enables those who are responsible for the day-to-day management of purchasing and procurement activities to measure the effectiveness of the function and deliver enhanced performance.

Specifically, it can help participants add value to the organisation through:

  • Increased probability of on-time and on-budget delivery
  • Improved quality and satisfaction levels
  • Reduced internal customer complaints and costs
  • Identification of added value
  • Lower risk generated from procurement decisions
  • Reduced waste

Learning Objectives:

By the end of the programme participants will be in a position to add value to the organisation by being able to:

  • Prioritise the aspects of the procurement function that should be measured
  • Explain the ‘five rights’ of procurement
  • Understand the importance of the delivery of procurement activities of the right quality, on time, and to budget and why these facets of the procurement function need to be measured
  • Measure quality delivered from the procurement function using both objective and subjective data
  • Explain the importance of on-time delivery
  • State why the right cost base needs to be attained from the suppliers by the procurement operation
  • Recognise why stakeholder satisfaction is critical and needs to be measured
  • List the core elements of the risk cycle and identify how each is measured
  • Outline the important aspects of measurement in personnel and team management

Who should attend?

  • This course is aimed at managers and support staff working within a procurement function where supplier selection, supplier management and process control add value to operational performance.
  • All procurement teams involved maintaining effective relationships with internal users and suppliers.

Course Outlines:

Day 1

Measuring Purchasing Performance

  • The importance to procurement in internal customer relationships
  • Hidden costs of poor relationships
  • New types of relationship models in the commercial work
  • The importance of ‘Selling the function’

Day 2

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

Day 3

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

Day 4

Developing Key Performance Indicators and Service Levels

  • Negotiating achievable service levels
  • Developing balanced scorecards
  • Targets versus balanced scorecards

Day 5

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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