• View how much your company is spending, based on the invoice amount, for each commodity and supplier.
• View a commodity’s purchase order savings across all items and suppliers in an operating unit, in the selected period. These are savings that result from better purchase order prices, compared to the average price paid in the previous
• View how much more or less the company is spending on purchases in a commodity because of the quantities it is buying.
• View the total amount of contract purchases (for which negotiated contracts were used), non-contract purchases, and contract leakage (maverick purchases), by commodity.
• View contract purchases, non-contract purchases, and contract leakage rates as a percentage of the total PO Purchases Amount. If the total PO Purchases Amount for a commodity is increasing, you can determine whether the rate of contract utilization
is increasing with it.
• View the purchasing documents that are responsible for contract
purchases, non-contract purchases, and contract leakage.
Using the Commodity Spend Management dashboard/reports, commodity managers can report the total cost of procuring goods and services in their commodities. They can analyze the reports to lower those costs. They can focus on negotiating contracts for the commodities
that will yield the greatest savings.
• Invoice Amount Growth Rate: [(Invoice Amount Current Period – Invoice Amount
Previous Period) / Invoice Amount Previous Period] * 100.
This is the amount more or less that is being invoiced for the selected commodity or
commodities, compared to the previous period
- Price Savings Amount: Sum of [Quantity * (Price – Benchmark Price)] * -1.
Use this KPI to measure how much you are saving in a commodity because of better
purchase order prices. The savings are measured by comparing today’s prices with
a benchmark price, which is the average purchase order unit price for the items in
the previous enterprise year for all suppliers in a commodity, across all operating
units. A negative price savings indicates a price increase.
- Quantity Change Amount at Benchmark:Sum of [Benchmark Price * (Quantity
Ordered Current Period – Quantity Ordered Previous Period)].
Use this KPI to track whether an increase in spending in a commodity is the result of
an increase in the purchased quantity, based on a benchmark price. The benchmark
price is the average purchase order unit price for the items in the previous enterprise
year for all suppliers in a commodity, across all operating units. A positive number
indicates an increase in the quantity purchased as compared to the prior period.
For example, a price savings amount of -31 (in thousands) indicates that your price
increased compared to the benchmark price. If the quantity change at the benchmark
price also indicates an increase, the commodity manager can determine whether the
increased volume indicates a need to negotiate volume-discount prices or indicates
market price increases in that commodity.
- Contract Purchases Rate: (Contract Purchases Amount / PO Purchases Amount) *
The Contract Purchases Amount is the amount on all approved blanket purchase
agreement releases, standard purchase orders that reference a global blanket
purchase agreement, or standard purchase orders for items that were purchased
from the Oracle iProcurement catalog or via a punchout from the catalog (also
known as Oracle iProcurement catalog item entries).
Use this KPI to determine what percentage of your total purchasing amount in the
commodity was purchased on contract. A higher rate is desirable.
- Non-Contract Purchases Rate: (Non-Contract Purchases Amount / PO Purchases
Amount) * 100.
The Non-Contract Purchases Amount is the amount on all approved standard
purchase orders where, for the items being purchased, no negotiated pricing (no
blanket purchase agreement or Oracle iProcurement catalog item entry) was in place.
Use this KPI to determine the percentage of purchases in the commodity that were
made without any contract being in place. A lower rate is desirable.
- Contract Leakage Rate: (Leakage Amount / PO Purchases Amount) * 100.
The Leakage Amount is the amount on all approved standard purchase orders
where, for the item purchased, there was a blanket purchase agreement in effect that
could have been used to purchase the same item, instead of the standard purchase