In contrast to controlling spending, which is a purely cost oriented view on the procurement data, the procurement performance analysis sets its focus on the purchase processes and their performance.
An all-encompassing procurement information system collects all of the information available about suppliers, purchase processes, purchase strategies and costs thus giving a panoramic view over your existing procurement strategy. The target of evaluating structures and processes is then achievable. Once the process data is completely accessible, the potential for improvement can be uncovered and further operative as well as strategic optimization approaches can be identified.
Detailed and topical presentation of clearly defined metrics supports the understanding and the trust of your staff in the data and the fully illustrated processes. In addition, the automatic calculation of metrics and the creation of reports free the procurement and IT staff from time consuming recurring calculation and copy work.
In practice this means that the procurement department will have internal process information such as the processing time of purchase orders; performance data such as savings and supplier related information; purchase volume or delivery-on-time always at its disposal - all automatically processed, centrally stored and available anytime topically and via cockpits. These metrics and their historical data are traceable and verifiable by analysis tools with drill down functionalities. Furthermore the information can be distributed via freely configurable reports on basis of a time schedule in a regular way to a pre-defined mailing list.
The main requests of senior management towards spend performance analysis usually include the following elements:
- Holistic “360°” overview over the performance of the procurement department
- Consistent data and evaluation basis
- Meaningful performance indicators with detailed data history – it’s not the quantity that counts
- Automated, simple, understandable and fast in giving readable reports
- Possibility of topical access and immediate analysis via cockpits and dashboard
- Acceptance and understanding of the performance indicators across all hierarchy levels
The successful fulfilment of these demands starts long before the implementation of software tools. The course is set already during the first concept and definition phase. We are convinced that only a comprehensive project management system that starts from its original concept together with the detailed definitions of the specifications necessary and then developing toward a configured indicator system would guarantee the lasting success of your project! We offer a combination of methodology and software with the objective of illustrating business processes systematically, fully automated and current. With the help of our many years of proven project methodology we guide you in seven well-defined steps from the concept to actively steering with performance indicators. We support you with our branch-individual templates and guarantee the successful implementation of your KPI project within very short time.
Simmeth System offers operational and technical expertise based on 13 years of experience.
The benefits of software based procurement performance analysis for your immediate return-on-investment:
- Methodical project handling guarantees the right performance indicators
- Usage of templates on basis of 13 years of project experience guarantee slim projects and fast implementation
- Fully automated consolidation of data and calculation of indicators instead of manual calculation saves enormous efforts for IT and procurement departments
- Fully automated creation and distribution of the analysis and reports saves enormous preparation efforts and secures the correct distribution of the information
- Automating also means avoiding mistakes
- All information, cost indicators and reports topical and on the push of a button
- Web based entry masks based on a central database replace “scattered” excel landscapes