To demonstrate procurement’s value, you must collect relevant metric data, organize it accordingly, process the information in a way that makes sense for your Strategic Sourcing & Procurement goals, and present the information in way that is easy for business stakeholders to understand.
Ask the following key questions to begin the conversation internally about your Procurement Metric Maturity:
What Procurement metrics are you tracking?
- Are they the right metrics for your Sourcing & Procurement Team?
- Do they capture all relevant aspects of your Sourcing & Procurement team’s performance?
- Are some of them distractions or outdated and in need of refinement?
Why are you tracking these Procurement metrics?
- Do they further your Sourcing & Procurement Team’s progress toward defined cost reduction or value-generating goals?
- Do these Procurement metrics matter to functional stakeholders?
How are you validating and reporting these Procurement metrics?
- Do you have the right procurement data?
- Are you using the right tools to communicate them?
- Do you have the right people tracking and reporting in a way that will align with and make sense to the company’s various stakeholders?
- Are you routinely reviewing and refining your approach to Procurement metrics?