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Key purchasing figures: Definition & important aspects for buyers
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Key purchasing figures in a nutshell:
Purchasing KPIs are quantitative metrics for evaluating and managing purchasing performance in the areas of costs, quality, time and security of supply. They enable Purchasing to carry out a fact-based performance review and systematically identify optimization potential and the need for action.
Example: An automotive supplier monitors its supplier performance on a monthly basis using the key performance indicators delivery reliability (target: 95%), quality rate (target: 99.5%) and savings (target: 3% p.a.), with deviations above a defined threshold value automatically triggering measures in supplier management.
Contents
What are purchasing key figures?
Purchasing KPIs are quantitative metrics that are used to evaluate and manage performance in purchasing. They provide important information on costs, quality, delivery times and the efficiency of procurement processes. By regularly analyzing these key figures, companies can identify weaknesses, optimize strategies and adapt purchasing to overarching business objectives.
Central elements of purchasing key figures
Importance of key purchasing figures in procurement management
In modern procurement management, key purchasing figures are indispensable for the efficient management of purchasing activities. They enable data-based decisions to be made, costs to be reduced and supplier relationship management to be optimized. Through the transparent presentation of performance indicators, companies can adapt their purchasing strategies in a targeted manner and achieve competitive advantages.
Key purchasing figures: From manual data collection to real-time analytics
Building on the central role of purchasing KPIs in the procurement process, they are essential for measuring performance and efficiency. In practice, they enable companies to make data-driven decisions and optimize their procurement strategy. However, traditional methods of collecting and analyzing these metrics often struggle with limitations, highlighting the need for a transformation towards modern approaches.
Old: Manual purchasing controlling processes
Traditional approach:
Traditionally, key purchasing figures were collected and analyzed manually. Data from various sources had to be manually entered into spreadsheets. Analyzing cost trends, supplier evaluations and process KPIs was time-consuming and error-prone. Due to the delayed availability of current data, decisions could often not be made promptly. In addition, isolated systems and a lack of data integration made it difficult to gain a holistic overview of the procurement process. This led to inefficient processes, untapped savings potential and a limited ability to react to market changes.
New: Real-Time Procurement Analytics
Real-Time Procurement Analytics:
The modern approach revolutionizes the collection and analysis of key purchasing figures through the use of real-time analytics. With the help of integrated ERP systems and business intelligence tools, data is automatically collected and analyzed in real time. Companies can now react immediately to current developments and make informed decisions. Innovative technologies such as artificial intelligence and machine learning enable in-depth analyses, forecasts and the identification of patterns. This leads to increased transparency, more efficient processes and enables proactive management of purchasing. In addition, risk analysis can be identified at an early stage and strategies can be adapted accordingly.
Practical example: Implementation of real-time analytics at Müller AG
Müller AG, a medium-sized production company, introduced a real-time analytics system in purchasing in 2021. Thanks to automated data collection and evaluation, the company was able to reduce order processing time by 40%. The transparency of supplier performance led to a 25% reduction in delivery delays. In addition, savings of 8% of total costs were realized by identifying and resolving price discrepancies and unfavorable contract terms more quickly. Within the first year of implementation, purchasing efficiency increased significantly, contributing to an increase in Müller AG's competitiveness.
Conclusion on supplier evaluation
Key purchasing figures are essential control instruments for effective procurement management. They enable an objective assessment of purchasing performance, support the identification of optimization potential and form the basis for strategic decisions. Success lies in the balanced combination of quantitative metrics with qualitative assessments and consistent alignment with overarching corporate objectives. With a view to increasing digitalization and the use of AI-supported analysis tools, key purchasing figures will contribute even more precisely and meaningfully to the management of procurement processes in the future.
