4 Procurement KPIs Software Companies Should Be Measuring Immediately – In Case You Missed It
In this podcast, we had the pleasure of welcoming procurement expert Marisa Brown. Marisa is the Senior Principal Research Lead of Supply Chain Management at APQC. This joint webinar “The 4 Procurement KPIs Every Software Company Should Be Measuring”, was co-hosted by our very own procurement technology consultant, Koju Kojwang.
Here are the highlights of the webinar:
It’s always important to track costs. The first key KPI to look at is the total cost to perform the procurement process group! However, these costs are not always easily measured.
How can you make sure you are building scalable processes as your company grows?
Measure the number of purchase orders processed per procurement process group. Above all, it’s a great efficiency metric. In addition, If you are lagging in this indicator, there might be some opportunities to address by streamlining outdated processes. These might include paper purchase orders or using tools that are slowing your team down.
No one wants POs to take forever to process. That’s why measuring cycle time in hours that it takes to place a purchase order is such an important metric.
Marisa says, it is surprising how long some organizations take when it comes to processing POs. There are many reasons why this is the case for example it’s because of bottlenecks, a lack of clear processes or not leveraging the right technology. These are a few examples of why some companies are lagging in this KPI.
Lastly, it is not a surprise that forward-thinking finance and procurement teams are transitioning to paperless systems. However, in the webinar, Marisa also explains the impact of pandemics. For example, the timely COVID-19 virus and how it is impacting procurement teams and supply chains today. Many companies around the world are now shifting to fully remote offices to keep their team members safe.
Following the shift to remote work, being able to approve purchase orders electronically is critically important. Clearly, teams are no longer able to do face to face approvals, and traditional processes such as paper or excel become cumbersome and unrealistic.
Finally, if you missed out you can watch the webinar on-demand. Listen in on how Marisa and Koju recommendations on how finance and procurement leaders can take proactive measures to improve upon the four KPIs today, and transform your organization for the better.
Senior Principal Research Lead, Supply Chain Management
Procurement Technology Consultant