Procurement KPI, or Key Performance Indicator, is a metric used to measure the efficiency and effectiveness of a business’s procurement process. It is an important tool for organizations to assess their performance and identify areas for improvement. The primary objective of procurement KPI is to monitor and measure the organization’s performance in terms of its purchasing activities. This includes monitoring the volume and cost of purchased goods and services, as well as measuring and evaluating the efficiency of the procurement process.
Procurement KPI can be divided into three categories. First, it can measure the efficiency of the overall procurement process, such as the time taken to complete a purchase order or the time taken to find the right supplier. Secondly, it can measure the effectiveness of the procurement process, such as the accuracy of delivery, the level of quality assurance and the speed of delivery. Lastly, it can