Procurement management is a must for every industry, instead of trusting paper-based manual work, industries must start embracing digital solutions that augment automation.
As an organization you might want to follow approval cycles, for which you can’t keep getting approvals manually, and only automated approvals can help you handle things on time. Using OKRs will help them optimize budget, as it reduces manpower with digital solutions. Be it an invoice, distribution, or account maintenance, using the software they can manage the goods and services and all kinds of payment just under their fingertips. Also by using the software you can restore confidentiality and safeguard proprietary information without any hassle.By using OKRs you can evolve a global compact by administering the organization’s goal and by nullifying the breaches. All your business dealings can be guaranteed with results as OKRs are highly objective oriented and team cooperated. By fixating your domain’s key results and objectives you are paving the way for a more formulated work game that promises guaranteed results with enthusiastic team participation. By framing your OKRs, your not only benefiting the firm but also you are opening the opportunities for your teammates by letting them watch over their performance and progress.
Example 1:
Objective
Achieve Operational Excellecne in the Procurement function
Target Date: Q3-2020
Visibility: All Employees
Key Results
Maintain a95% service level of normal stock items
Service Level Main tain a 100% service level for Critical, Insurance, major consumables
Service Level Purchase prices against Budget for a category under 90%
Purchases Example 2:
Objective
Develop a competitive Supplier base
Target Date: Q3-2020
Visibility: All Employees
Key Results
Complete Due diligence & Evaluation for 30 potential suppliers
Supplier Quality Index Increase the non-competitive existing suppliers within the same category to 10
Non-Competitive Existing Suppliers Decrease Supplier concentration to less than 90 %
Supplier Contentration Example 3:
Objective
Optimize Procurement Process to increase savings
Target Date: Q3-2020
Visibility: All Employees
Key Results
Maintain 100% approval of purchases through the procurement process with savings theme
Procurement Process Increase Savings from $2M to $4M from alternative standardized materials use
Revenue Increase category reviews to 12 per quarter
Customer Reviews Increase Cover 65% of Procurement process under digitization Initiative
Procurement Example 4:
Objective
Develop strong relationships with other groups within the organization
Target Date: Q3-2020
Visibility: All Employees
Key Results
Increase internal customer satisfaction index to be further improved from 65%
Customer Satisfaction Index Decrease of registered Consumer complaints related to the purchasing department to 16 per quarter
Registered Consumer Complaints Evaluate & Select at Least 20% of total suppliers by cross-functional teams
Cross Functional Team Build Example 5:
Objective
Contract compliance safeguarding the Procurement objective delivery
Target Date: Q3-2020
Visibility: All Employees
Key Results
Decrease instance of company-paid higher prices than were agreed to pay to 0
Price Decrease 35 % in the count for current contract service-level agreements violations
Service Level Agreement Increase 10 % from Negotiating price savings from last quarter
Price Earnins Growth Ratio Example 6:
Objective
Lead the organization to spend saving
Target Date: Q3-2020
Visibility: All Employees
Key Results
Increase 50% in $ Savings achieved by unnecessary expenditures opportunities
Revenue Increase 20% in vendors enrolment to ensure we get the best price per unit
Vendor Peformance Example 7:
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 Ensure 0 Maverick spends
Average Spend Decrease RFQ/PR processing days to 10 from 15 days for regular supplies
RFQ/PR Processing Davs Example 8:
Objective
Go Glocal to optimize cost
Target Date: Q3-2020
Visibility: All Employees
Key Results
Decrease International/Local Spend by 12% per quarter
International/Local Spend Sustain the local spend percentage / overall spend to minimum 7%
Local Spend