Procurement

Reports
See beyond the numbers. Unlock insights, Drive better decisions

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 Procurement Reports
Simplified Guide
Purpose: To provide detailed information on procurement Purpose: To track and analyze the performance, capabilities,
spending patterns, supplier relationships, and cost drivers. and risk profiles of suppliers.
Cross-Functional Teams Involved: Procurement, Finance, Cross-Functional Teams Involved: Procurement, Supplier
Operations, Category Management Quality, Engineering, Operations

Supplier Base Reports

Stakeholders: CFO, COO, Procurement Director, Category Stakeholders: Procurement Director, Supplier Quality
Managers, Budget Owners Manager, Engineering Managers, Operations Managers
Spend Reports

Key Metrics: Key Metrics:

Total spend by supplier, Spend by category, Spend by Supplier count and segmentation, Supplier performance
business unit or department, Spend by time period (e.g., scorecards (e.g., quality, delivery, cost), Supplier risk
monthly, quarterly, annually), Spend by location, assessments, Supplier diversity metrics, Supplier
Payment terms and discounts innovation contributions
Benefits: Benefits:
• Identify top suppliers and spending trends • Identify high-performing and high-risk suppliers
• Analyze cost drivers and opportunities for savings • Support supplier development initiatives
• Support budgeting and forecasting • Optimize the supply base
• Facilitate supplier performance evaluation • Mitigate supply chain risks
• Ensure compliance with procurement policies • Foster strategic supplier relationships

Purpose: To gain insights into spending patterns, market Purpose: To monitor contract performance, compliance, and
dynamics, and sourcing opportunities within specific product or renewal opportunities.
service categories. Cross-Functional Teams Involved: Procurement, Legal,
Contract Management Reports
Category Analysis Reports

Cross-Functional Teams Involved: Procurement, Category Contract Management, Business Units

Management, Engineering, Marketing Stakeholders: Contract Managers, Legal Counsel,
Stakeholders: Category Managers, Procurement Director,
Procurement Director, Business Unit Managers
Engineering Managers, Marketing Managers
Key Metrics:
Key Metrics:
Contract value and duration, Contract compliance rates
Spend by category and subcategory, Supplier market share
and concentration, Price and cost trends, Supply and Contract renewal rates, Contract performance against
demand dynamics, Innovation and technology advancements KPIs, Contract risk assessments
Benefits: Benefits:
• Develop effective category sourcing strategies • Ensure contract compliance
• Identify opportunities for consolidation and • Optimize contract performance
standardization • Identify contract renewal opportunities
• Negotiate favorable contracts • Mitigate contractual risks
• Mitigate supply market risks
• Foster supplier innovation

Purpose: To track and manage invoice processing, payment Purpose: To compare procurement performance against
terms, and cash flow. industry best practices, peers, and internal targets.
Cross-Functional Teams Involved: Procurement, Finance,
Accounts Payable (AP) Reports

Procurement Benchmarking

Cross-Functional Teams Involved: Procurement,

Accounts Payable Finance, Operations, Benchmarking Specialists
Stakeholders: CFO, Controller, Accounts Payable Manager, Stakeholders: Procurement Director, CFO, COO,
Procurement Director Benchmarking Team
Key Metrics: Key Metrics:
Invoice processing time, Payment terms compliance, Spend as a percentage of revenue, Procurement cost
Early payment discounts captured, Late payment per transaction, Procurement cycle time, Supplier
penalties incurred, Accounts payable turnover, Days performance benchmarks, Innovation and
payable outstanding (DPO) sustainability metrics
Benefits: Benefits:
• Improve invoice processing efficiency • Identify areas for improvement
• Optimize cash flow • Set realistic performance targets
• Strengthen supplier relationships • Drive continuous improvement
• Ensure compliance with payment terms • Gain a competitive advantage

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 Simplified Guide
Spend Reports
Where is the money going?
How are spending patterns evolving?
What are the underlying cost drivers?
The effectiveness of procurement strategies?

Total Spend by Supplier: Sum of all purchases from a specific supplier within a given period.
Spend by Category: Total spend on a specific category of goods or services (e.g., raw materials, IT
services).
Spend by Business Unit/Department: Total spend attributed to a specific business unit or department.
KPI

Spend by Time Period: Total spend within a defined time frame (e.g., monthly, quarterly, annually).
Spend by Location: Total spend associated with a specific geographic location or facility.
Payment Terms and Discounts: Analysis of payment terms negotiated with suppliers and discounts
captured.

• CFO: Oversees overall financial performance and uses spend

• Procurement: Responsible for collecting, data for budgeting, forecasting, and cost management.
analyzing, and interpreting spend data. • COO: Responsible for operational efficiency and uses spend
• Finance: Provides financial data, validates cost data to identify bottlenecks, optimize processes, and improve
Stakeholders

savings, and ensures compliance with supplier performance.

• Procurement Director: Manages the procurement function and
accounting standards.
Teams

uses spend data to track performance, identify savings

• Operations: Offers insights into production opportunities, and develop strategic sourcing initiatives.
requirements, inventory levels, and supplier • Category Managers: Develop and execute sourcing strategies
performance. for specific categories and use spend data to analyze market
• Category Management: Uses spend data to trends, negotiate contracts, and manage supplier relationships.
develop category sourcing strategies and • Budget Owners: Monitor spending within their respective
identify opportunities for consolidation and departments or business units and use spend data to track
standardization. budget performance and identify areas for cost reduction.

Benefits and Applications

Identify Top Suppliers and Spending Trends: Spend reports highlight the suppliers receiving the largest share of
procurement spending, allowing for focused supplier relationship management and potential consolidation opportunities.
They also reveal trends in spending over time, enabling proactive identification of potential cost increases or supply chain
risks.
Analyze Cost Drivers and Opportunities for Savings: By breaking down spend by category, location, and other
dimensions, spend reports help pinpoint the key cost drivers and identify areas where procurement strategies can be
implemented to reduce costs.
Support Budgeting and Forecasting: Historical spend data is essential for accurate budgeting and forecasting, allowing
procurement teams to anticipate future spending needs and allocate resources effectively.
Facilitate Supplier Performance Evaluation: Spend reports provide a basis for evaluating supplier performance,
particularly in terms of cost competitiveness. By comparing supplier pricing to market benchmarks and historical data,
procurement teams can identify opportunities for negotiation and cost reduction.
Ensure Compliance with Procurement Policies: Spend reports help monitor compliance with procurement policies, such
as preferred supplier programs, spending limits, and ethical sourcing guidelines.

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 Supplier Base Reports
•How is supplier performance tracked and evaluated across key metrics?
•What are the technical, operational, and financial capabilities of suppliers?
•How are potential risks associated with suppliers identified and mitigated?
•How is the organization's commitment to sourcing from diverse suppliers
monitored?
•How do suppliers contribute to innovation and new product development?

Supplier Count and Segmentation: number of suppliers and their categorization based on strategic
importance, spend volume, or other criteria (e.g., critical, leverage, bottleneck, routine).
Supplier Performance Scorecards: Typically uses a weighted scoring system based on pre-defined KPIs,
Metrics

such as on-time delivery, quality, cost, and responsiveness.

Supplier Risk Assessments: Often uses a weighted scoring system based on various risk factors,
including financial stability, geographic location, and compliance history.
Supplier Diversity Metrics: (Spend with Diverse Suppliers / Total Procurement Spend) x 100%
Supplier Innovation Contributions: Number of new ideas, products, or processes generated or
suggested by suppliers.

Procurement: Leads the supplier evaluation Procurement Director: Oversees the procurement function
and selection process, manages supplier and uses supplier base reports to track supplier
relationships, and collects supplier performance, identify risks, and develop sourcing strategies.
performance data. Supplier Quality Manager: Manages the supplier quality
Stakeholders

Supplier Quality: Assesses supplier quality program and uses supplier base reports to identify quality
Teams

systems, conducts audits, and works with issues, track improvement efforts, and ensure compliance
suppliers to improve quality performance. with quality standards.
Engineering: Provides technical specifications, Engineering Managers: Evaluate supplier capabilities and
evaluates supplier capabilities, and collaborates use supplier base reports to select suppliers for new product
with suppliers on new product development. development projects and ensure that suppliers meet
Operations: Relies on suppliers to meet technical specifications.
production requirements and provides Operations Managers: Rely on suppliers to meet production
feedback on supplier delivery and quality schedules and use supplier base reports to monitor supplier
performance. delivery performance and identify potential supply chain
disruptions.
Benefits and Applications
Identify High-Performing and High-Risk Suppliers: By analyzing supplier performance scorecards and risk
assessments, procurement teams can quickly identify their top-performing suppliers and those posing the greatest
potential risks. This allows for targeted supplier relationship management and risk mitigation strategies.
Support Supplier Development Initiatives: Supplier base reports highlight areas where suppliers need improvement,
enabling procurement teams to develop targeted supplier development programs to enhance capabilities and drive
performance.
Optimize the Supply Base: By analyzing supplier performance, capabilities, and risk profiles, procurement teams can
make informed decisions about which suppliers to retain, consolidate, or eliminate, leading to a more efficient and
effective supply base.
Mitigate Supply Chain Risks: Supplier base reports help identify potential supply chain disruptions, enabling
procurement teams to develop contingency plans and mitigate risks.
Foster Strategic Supplier Relationships: By recognizing and rewarding high-performing suppliers, procurement teams
can foster stronger relationships and encourage collaboration on innovation, cost reduction, and other strategic
initiatives.

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 • What are the spending patterns and key cost
Category Analysis
Reports
drivers in a category?
• Who are the major suppliers and what is the
level of competition in a category?
• What are the historical and projected price
trends in a category?
• What factors influence supply and demand in a
category?
• What emerging technologies could impact
sourcing strategies?

Spend by Category and Subcategory: Breakdown of spending within a category and its subcategories, often presented as a
percentage of total spend or in absolute dollar amounts.
Supplier Market Share and Concentration: Analysis of the market share held by key suppliers within a category, often using a
Metrics

pie chart or bar graph to visualize the distribution.

Price and Cost Trends: Historical and projected price and cost movements for goods and services within a category, often
presented as a line graph or trend analysis.
Supply and Demand Dynamics: Assessment of supply and demand factors influencing price and availability within a category,
often using qualitative analysis and market research.
Innovation and Technology Advancements: Tracking of new technologies and innovations emerging within a category, often
using patent analysis, industry reports, and supplier presentations.

• Procurement: Leads the sourcing process,

negotiates contracts, and manages Category Managers: Use category analysis reports to develop and
refine sourcing strategies, identify potential suppliers, negotiate
supplier relationships.
contracts, and manage supplier relationships.
• Category Management: Develops and Procurement Director: Oversees the procurement function and
executes sourcing strategies for specific
Teams

uses category analysis reports to track category performance,

Stakeholders

categories. identify cost-saving opportunities, and align sourcing strategies

• Engineering: Provides technical with overall business objectives.
specifications, evaluates supplier Engineering Managers: Evaluate supplier capabilities within
capabilities, and collaborates on new specific categories and use category analysis reports to select
product development. suppliers for new product development projects and ensure that
• Marketing: Provides insights into suppliers meet technical specifications.
Marketing Managers: Provide input on customer needs and
customer needs, market trends, and
market trends within specific categories and use category analysis
product roadmaps. reports to align sourcing strategies with product roadmaps and
marketing campaigns.
Benefits and Applications
Develop Effective Category Sourcing Strategies: By understanding spending patterns, market dynamics, and
supplier capabilities within a category, procurement teams can develop targeted sourcing strategies to optimize
costs, mitigate risks, and foster innovation.
Identify Opportunities for Consolidation and Standardization: Category analysis reports can reveal
opportunities to consolidate spending with fewer suppliers or standardize product specifications, leading to
economies of scale and reduced costs.
Negotiate Favorable Contracts: By understanding price and cost trends, supply and demand dynamics, and
supplier market share, procurement teams can negotiate more favorable contracts with suppliers.
Mitigate Supply Market Risks: Category analysis reports help identify potential supply chain disruptions, price
volatility, and other risks, enabling procurement teams to develop contingency plans and mitigate potential
negative impacts.
Foster Supplier Innovation: By tracking emerging technologies and innovations within a category, procurement
teams can identify and partner with innovative suppliers to gain a competitive advantage.

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Contract Management
Reports
How is adherence to contractual terms and conditions tracked?
What process is used to determine the future of contracts nearing expiration?
What does evaluating potential risks associated with each contract entail?

Contract Value and Duration: Total value and length of each contract, often categorized by supplier,
category, or business unit.
Metrics

Contract Compliance Rates: (Number of Compliant Contracts / Total Number of Contracts) x 100%
Contract Renewal Rates: (Number of Contracts Renewed / Number of Contracts Expiring) x 100%
Contract Performance against KPIs: of supplier performance against key performance indicators (KPIs)
defined in the contract, often using a scorecard or rating system.
Contract Risk Assessments: Evaluation of potential risks associated with each contract, often using a
weighted scoring system based on various risk factors.

Procurement: Negotiates contracts with

suppliers, manages supplier relationships, and Contract Managers: Use contract management reports to
monitors contract performance. track contract performance, identify compliance issues, and
Legal: Provides legal expertise, reviews manage the contract renewal process.
contract terms and conditions, and advises on Legal Counsel: Reviews contract management reports to
Teams

Stakeholders

compliance and risk mitigation. assess legal risks, ensure compliance with regulations, and
Contract Management: Oversees the contract advise on dispute resolution.
lifecycle, including drafting, negotiation, Procurement Director: Oversees the procurement function
execution, monitoring, and renewal. and uses contract management reports to monitor overall
Business Units: Define their specific contract performance, identify trends, and develop strategies
requirements for goods and services, to optimize contract outcomes.
collaborate on contract development, and Business Unit Managers: Rely on contract management
provide feedback on supplier performance reports to track supplier performance against their specific
requirements, identify potential issues, and collaborate with
procurement to address concerns.
Benefits and Applications
Ensure Contract Compliance: By tracking contract compliance rates and identifying potential
breaches, procurement teams can proactively address issues and mitigate legal and financial risks.
Optimize Contract Performance: By monitoring supplier performance against KPIs, procurement
teams can identify opportunities for improvement, renegotiate contract terms, or implement supplier
development programs to enhance outcomes.
Identify Contract Renewal Opportunities: Contract management reports help identify contracts
nearing expiration, allowing procurement teams to evaluate supplier performance and make informed
decisions about renewal, renegotiation, or termination.
Mitigate Contractual Risks: By assessing contract risks and developing mitigation strategies,
procurement teams can minimize the potential for financial losses, legal disputes, and supply chain
disruptions.

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Accounts Payable
(AP) Reports
How can we measure and improve the efficiency of our invoice processing system?
What methods are used to ensure compliance with the payment terms agreed upon
with our suppliers?
What are the best practices for managing cash outflows in procurement?
How do our payment practices affect our relationships with suppliers?

Invoice Processing Time: Time of Invoice Approval - Time of Invoice Receipt)

Payment Terms Compliance: (Number of Invoices Paid On Time / Total Number of Invoices) x 100%
Metrics

Early Payment Discounts Captured: Sum of all discounts realized by paying invoices within the
discount period.
Late Payment Penalties Incurred: Sum of all penalties incurred for paying invoices after the due date.
Accounts Payable Turnover: (Total Purchases / Average Accounts Payable)
Days Payable Outstanding (DPO): (Average Accounts Payable / Cost of Goods Sold) x 365 days

Procurement: Negotiates contracts

CFO: Oversees overall financial performance and uses AP
with suppliers, including payment reports to monitor cash flow, manage working capital, and
terms, and works with AP to ensure ensure compliance with financial regulations.
timely invoice processing. Controller: Responsible for accounting operations and uses
Teams

Stakeholders

Finance: Oversees overall financial AP reports to track invoice processing, manage payment
management, including cash flow, and terms, and ensure accurate financial reporting.
Accounts Payable Manager: Manages the AP function and
sets policies for payment terms and uses AP reports to monitor team performance, identify
discounts. process improvements, and ensure timely and accurate
Accounts Payable: Processes invoices, payments to suppliers.
verifies accuracy, and executes Procurement Director: Oversees the procurement function
payments to suppliers. and uses AP reports to track supplier payment performance,
identify potential issues, and collaborate with AP to improve
payment processes.
Benefits and Applications
Improve Invoice Processing Efficiency: By analyzing invoice processing time, AP teams can
identify bottlenecks, streamline processes, and reduce the time it takes to pay suppliers.
Optimize Cash Flow: AP reports help manage cash outflows effectively, allowing
organizations to maximize early payment discounts and minimize late payment penalties.
Strengthen Supplier Relationships: Timely and accurate payments are essential for building
strong supplier relationships. AP reports help ensure that suppliers are paid on time,
fostering trust and collaboration.
Ensure Compliance with Payment Terms: AP reports monitor compliance with negotiated
payment terms, reducing the risk of late payments, penalties, and strained supplier
relationships.

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 Procurement
Benchmarking Reports
How does our procurement compare to industry leaders?
What best practices do top organizations use in procurement?
Where does our procurement fall short compared to benchmarks?
What can we do to improve our procurement processes and performance?

Spend as a Percentage of Revenue: Total Procurement Spend / Total Revenue) x 100%

Procurement Cost per Transaction: (Total Procurement Costs / Number of Transactions Processed)
Metrics

Procurement Cycle Time: (Time of PO Issuance - Time of Requisition Creation)

Supplier Performance Benchmarks: Comparison of supplier performance against industry averages or
best-in-class companies, often
Innovation and Sustainability Metrics: Assessment of procurement's contribution to innovation and
sustainability goals, often using metrics such as the number of supplier-led innovations implemented or
the organization's carbon footprint reduction.

Procurement: Provides internal Procurement Director: Oversees the procurement

performance data, participates in function and uses benchmarking reports to identify areas
benchmarking studies, and implements for improvement, set performance targets, and drive
improvement initiatives. continuous improvement initiatives.
Finance: Provides financial data, validates CFO: Uses benchmarking reports to assess the financial
Teams

Stakeholders

cost savings, and assesses the financial performance of the procurement function and identify
impact of procurement performance. opportunities for cost reduction and efficiency
Operations: Collaborates on improvements.
benchmarking operational metrics, such as COO: Collaborates on benchmarking operational metrics
supplier delivery and quality performance. and uses benchmarking reports to identify opportunities
Benchmarking Specialists: Provide to improve supply chain efficiency and effectiveness.
expertise in benchmarking methodologies, Benchmarking Team: Conducts benchmarking studies,
data collection, and analysis. collects and analyzes data, and develops recommendations
for improvement.
Benefits and Applications
Identify Areas for Improvement: By comparing performance to benchmarks, procurement
teams can pinpoint areas where they are lagging behind and identify opportunities for
improvement.
Set Realistic Performance Targets: Benchmarking data provides a basis for setting realistic
and challenging performance targets, driving continuous improvement efforts.
Drive Continuous Improvement: Benchmarking reports can inspire procurement teams to
adopt best practices and innovative approaches used by other organizations, leading to ongoing
performance enhancements.
Gain a Competitive Advantage: By achieving best-in-class procurement performance,
organizations can gain a competitive advantage in terms of cost, quality, delivery, and
innovation.

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 Savings Lifecycle
Analysis Reports
How do we track the actual savings achieved from sourcing projects over time?
Are our cost savings maintained over the long term, and what factors affect their
sustainability?
How do we calculate the financial return generated from our sourcing initiatives?
How do cost savings from procurement contribute to our overall profitability?

Savings Realized over Time: Cumulative savings achieved from sourcing projects, tracked over a
defined period (e.g., quarterly, annually, over the contract lifecycle).
Metrics

Savings Sustainability: Assessment of whether savings are maintained over time, often using trend
analysis, variance analysis, or qualitative assessments.
Return on Investment (ROI) of Sourcing Projects: (Financial Gain from Investment - Cost of
Investment) / Cost of Investment
Impact of Savings on Profitability: Analysis of how cost savings contribute to the organization's
profitability, often using metrics like profit margin, operating income, or earnings per share.

Procurement: Leads sourcing Procurement Director: Uses savings lifecycle analysis

projects, negotiates contracts, and reports to demonstrate the value of procurement to the
organization, justify future investments in sourcing
tracks savings realization.
initiatives, and track the long-term impact of
Finance: Validates cost savings, procurement strategies.
Teams

Stakeholders

provides financial data, and CFO: Relies on savings lifecycle analysis reports to
analyzes the impact of savings on assess the financial performance of the procurement
profitability. function, track the contribution of cost savings to
Sourcing Teams: Execute sourcing profitability, and make informed decisions about
projects, implement cost-saving resource allocation.
Sourcing Project Leaders: Use savings lifecycle analysis
initiatives, and monitor supplier reports to monitor the performance of their sourcing
performance. projects, identify areas for improvement, and ensure the
sustainability of savings.
Benefits and Applications
Demonstrate the Value of Procurement: By quantifying the cumulative savings achieved
from sourcing projects, procurement teams can showcase their contribution to the
organization's bottom line and demonstrate the value of their strategic sourcing efforts.
Justify Future Investments in Sourcing Initiatives: A strong track record of savings
realization and ROI can be used to justify future investments in procurement technology,
training, and resources.
Ensure the Long-Term Sustainability of Savings: By analyzing savings sustainability,
procurement teams can identify factors that contribute to savings erosion and develop
strategies to mitigate those factors, ensuring that cost savings are maintained over the long
term.

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 Procurement Status
Reports
How do we track open purchase orders and delivery details?
How do we monitor and address supplier delivery performance?
How do we track inventory to balance stock levels and costs?
How do we identify and mitigate potential supply chain disruptions?

Open Order Status: Number and value of outstanding purchase orders, often categorized by supplier,
category, or business unit.
Metrics

On-Time Delivery Performance: (Number of On-Time Deliveries / Total Number of Deliveries) x 100%
Order Fulfillment Cycle Time: (Time of Delivery - Time of Order Placement)
Inventory Levels: Quantity and value of inventory on hand at various locations, often tracked using
inventory management systems or ERP systems.
Potential Supply Chain Disruptions: Identification and assessment of potential disruptions, often using
qualitative analysis, risk assessments, and external data sources (e.g., news reports, weather forecasts).

Procurement: Places purchase Procurement Director: Uses procurement status reports to monitor overall
orders, manages supplier supply chain performance, identify potential risks, and make strategic
relationships, and tracks order status. decisions to ensure timely delivery of goods and services.
Logistics Manager: Uses procurement status reports to plan transportation
Logistics: Manages transportation,
routes, optimize warehouse operations, and manage the flow of goods
warehousing, and distribution of
Stakeholders

through the supply chain.

Teams

goods. Expeditors: Rely on procurement status reports to identify and prioritize

Expediting: Works with suppliers to orders requiring expediting, track shipment progress, and communicate with
expedite deliveries and resolve suppliers to resolve delays.
shipping delays. Supplier Relationship Managers: Use procurement status reports to monitor
Supplier Management: Monitors supplier delivery performance, identify potential issues, and collaborate with
supplier performance and suppliers to improve on-time delivery.
communicates with suppliers Project Managers: Rely on procurement status reports to track the delivery of
materials for projects, anticipate potential delays, and adjust project schedules
regarding potential disruptions.
accordingly.
Internal Customers: Use procurement status reports to track the status of
their orders, estimate delivery dates, and plan their operations accordingly.
Benefits and Applications
Improve Supply Chain Visibility: Gain real-time visibility into the flow of goods and services, enabling
procurement teams to track order status, monitor delivery performance, and identify potential bottlenecks or
disruptions.
Proactively Manage Potential Disruptions: By identifying and assessing potential supply chain disruptions,
procurement teams can develop contingency plans, expedite deliveries, or source from alternative suppliers to
mitigate the impact of disruptions.
Ensure Timely Delivery of Goods and Services: Procurement status reports help ensure that goods and
services are delivered on time to meet customer demands, minimizing production delays and improving
customer satisfaction.
Support Production Planning and Scheduling: Real-time visibility into order status and delivery schedules
enables production planners to adjust production schedules, optimize inventory levels, and ensure that
materials are available when needed.

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 Supplier Performance
On-Time Delivery Supplier Lead Time Supplier Defect Rate
The percentage of orders The percentage of defective
The average time it takes for a
delivered on or before the goods or services received from
supplier to fulfil an order from
agreed-upon delivery date suppliers
placement to delivery
[% = (Number of On-Time [% = (Number of Defective
[# = Sum of all Lead Times /
Deliveries / Total Number of Units / Total Number of Units
Number of Orders].
Deliveries) x 100] Received) x 100]

Cost & Savings

Cost Savings Cost Avoidance COGS Reduction
Total cost reductions achieved
Savings realized by preventing The decrease in the cost of
through negotiation, sourcing
price increases or mitigating materials and services used in
strategies, and supplier
potential cost overruns production
collaboration
[$ = (Potential Cost Increase - [% = (Baseline COGS - Current
[$ = (Baseline Cost - Negotiated
Actual Cost)] COGS) / Baseline COGS]
Cost)]

Procurement Efficiency
Procurement Cycle Time PO Cycle Time Invoice Processing Time
The average time it takes to
The time it takes to create, The time it takes to process and
complete the entire procurement
approve, and issue a purchase approve supplier invoices
process from requisition to
order [# = (Time of Invoice Approval -
payment
[# = (Time of PO Approval - Time Time of Invoice Receipt)]
[# = (Time of PO Issuance - Time
of PO Creation)]
of Requisition Creation)]

Compliance
Contract Compliance Maverick Spend Supplier Diversity
The percentage of contracts that The percentage of spend allocated
The proportion of spending that
are fully compliant with agreed- to minority-owned, women-owned,
occurs outside of established
upon terms and conditions or small businesses
contracts or approved suppliers
[% =(Number of Compliant [% = (Spend with Diverse
[% = (Total Spend Outside
Contracts / Total Number of Suppliers / Total Procurement
Contracts / Total Spend) x 100]
Contracts) x 100] Spend) x 100]

• KPIs should be aligned with the overall strategic objectives of the organization.
• Reliable data is essential for meaningful performance measurement.
• KPIs should be tracked and reported on a regular basis to identify trends and
drive improvement.
• KPIs should provide actionable insights that lead to improvements in
procurement processes and supplier relationships.

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 Thank you for being a part of
this journey – your continued
support and engagement fuel our
passion for adding more to our
procurement excellence!
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