Procurement metrics are an important tool for businesses to measure the effectiveness of their procurement processes. They provide a way to measure the efficiency and effectiveness of the procurement process, and help businesses identify areas of improvement. The official business definition of procurement metrics is “the measurement of performance, cost, and risk associated with the procurement process.” This includes metrics such as total cost of ownership, total cost of acquisition, and supplier performance. These metrics help businesses understand the costs associated with the procurement process, identify potential areas of improvement, and make informed decisions about their procurement strategies. By measuring the performance of their procurement processes, businesses can ensure that they are getting the best value for their money and are making the most of their resources.
