Financial Metrics for Purchasing Professionals (Member Q and A)

PI Blogger — Wed, 09 Apr 2008 12:27:09 +0000

What are some suggested metrics for Procurement Managers? (within the context of a manufacturing enviroment, running a mid scale ERP program)

Member Question:

I'm establishing my own suggested goals for a company performance-based bonus based on my work as the Procurement Manager for a manufacturing division; we're running Epicor Vantage ERP software to manage the business.

Houston, Texas

My Answer:

Supply Chain and Procurement Practices Group

Eliminate Maverick Buying: Closing the Gap Between Sources of Supply and Demand Through Web-Based Procurement

PI Blogger — Mon, 31 Mar 2008 22:49:06 +0000

In his book e-Procurement, From Strategy to Implementation, Dale Neef estimated that “nearly 80%
of organizations that have rushed to establish Web sites for online retailing have failed to invest in
the purchasing and distribution systems that make delivery of their products possible.”i

At the height of the dot.com revolution, businesses were focused almost entirely on the potential of
the Internet. Driven to jump on the “new economy” bandwagon and not get left behind, corporate
executives placed more emphasis on establishing Internet presence, rather than on how it could be

Supply Chain and Procurement Practices Group

aberdeen group

Financial Metrics for Purchasing Professionals (Member Q and A)

Eliminate Maverick Buying: Closing the Gap Between Sources of Supply and Demand Through Web-Based Procurement