Business Impact Factors such as innovation and digitization are constantly changing and to keep in pace, your procurement must stay agile. Businesses are tasking procurement to co-create value with suppliers and to explore innovation in areas like payment. Some Procurement Metrics that foster improved supplier relations are Days Sales Outstanding (DSO) Value, Overdue Invoices (Value and Number).
One of the biggest challenges is often the time and effort that the Supplier spends in filling out spreadsheets. Keep the brick wall effect at bay with an intuitive OKR Platform. With a digital OKR platform, your procurement remains agile and your focus can be more on responsible sourcing, Operational Efficiency and value delivery.
Example 1: Contract compliance safeguarding the Procurement objective delivery
Objective
Contract compliance safeguarding the Procurement objective delivery
Target Date: Q3-2020
Visibility: All Employees
Key Results
Reduce instance of company-paid higher prices than were agreed to pay to 0
Reduce instance of company-paid higher prices than were agreed to pay to 0 Reduce 35% in the count for current contract service-level agreements violations
Count for current contract service-level agreements violations Increase 10% from Negotiating price savings from last quarter
Negotiating Price Savings Example 2: Cost avoidance to lead the organization to spend saving
Objective
Cost avoidance to lead the organization to spend saving
Target Date: Q3-2020
Visibility: All Employees
Key Results
Increase 50% in $ Savings achieved by unnecessary expenditures opportunities
Savings Increase 20% in vendors enrolment to ensure we get the best price per unit
Vendors Enrolment Example 3: Procurement building up an effective and agile organization
Objective
Procurement building up an effective and agile organization
Target Date: Q3-2020
Visibility: All Employees
Key Results
Reduce the average time to place a purchase order to 5 hour
Average time to place a purchase Ensure 0 Maverick spends
Maverick Spends Example 4: Go Glocal
Objective
Go Glocal
Target Date: Q3-2020
Visibility: All Employees
Key Results
Reduce International/Local Spend by 12% per quarter
International/Local Spend Sustain the local spend percentage to overall spend to 7%
Local Spend Percentage Example 5: Real-time demand insights and demand shaping to lead savings
Objective
Real-time demand insights and demand shaping to lead savings
Target Date: Q3-2020
Visibility: All Employees
Key Results
Increase number of suppliers covered under right prediction and contingency planning method from 50 to 80
Move to Google Cloud $ savings from non-exposure to supplier risks
$ savings Example 6: Build an adaptive and agile supply chain
Objective
Build an adaptive and agile supply chain
Target Date: Q3-2020
Visibility: All Employees
Key Results
Fulfillment days saved from supply chain visibility
Fulfillment days saved from supply chain visibility Minimize the risk score towards supply chain disruptions
Minimize the risk score towards supply chain disruptions Example 7: Adopt modern key trends changing the Supply Chain Management
Objective
Adopt modern key trends changing the Supply Chain Management
Target Date: Q3-2020
Visibility: All Employees
Key Results
Increase number of outsourcing partner included in the information chain
Outsourcing Partner 100% Supplier Qualification to be driven through the SQS process
Supplier Qualification Example 8: Include sustainability as a facet in supply chain operations
Objective
Include sustainability as a facet in supply chain operations
Target Date: Q3-2020
Visibility: All Employees
Key Results
Increase Sustainability Index further to 3% quarterly
Sustainability Index Maintain Saving from Education of carbon inefficiencies to $ 35K
Education of carbon inefficiencies Maintain Saving from less waste with “recycle-reuse-refurbish” materials to $10K
Recycle Reuse Refurbish Materials Example 9: Supply chain function a key growth enabled in an organization
Objective
Supply chain function a key growth enabled in an organization
Target Date: Q3-2020
Visibility: All Employees
Key Results
Reduce number of Complaints on Supply chain to 5
Vendor Complaints Reduce Percentage of Orders with complaints to a less than 14%
Percentage of Orders Example 10: Develop forecast accuracy in supply chains
Objective
Develop forecast accuracy in supply chains
Target Date: Q3-2020
Visibility: All Employees
Key Results
Further reduce maximum variance from actual on Order forecast
Order Forecast Further reduce maximum variance from actual on the Material forecast
Material Forecast