Procurement Management Dashboard | Purchasing KPI Dashboard

Use the Procurement Management reports for the following:
• Monitor key performance measures, such as the percentage of non-contract
purchases to total purchases, and compare them across operating units.
• Observe purchasing trends including top suppliers, categories, and items.
• Identify maverick purchases (contract leakage) to manage compliance.
• Measure the percentage of the total invoice amount that is processed and controlled
by the purchasing organization.

Procurement KPIs

Non-Contract Purchases Rate: (Non-Contract Purchases Amount / PO Purchases Amount) * 100.
Percent of non-contract purchases to the total purchase amount. Non-contract purchases occur when, for an item purchased on a standard purchase order, there was no negotiated pricing (no blanket purchase agreement in place.

Use this KPI to measure the percentage of purchases made without any contract being in place. A lower rate is desirable.


Contract Leakage Rate: (Leakage Amount / PO Purchases Amount) * 100. Percentage of contract leakage to the total purchase amount. Contract leakage occurs when, for an item purchased on a standard purchase order, a blanket purchase agreement was in effect that could have been used instead.

Use this KPI to measure the percentage of purchases that are made off-contract. A lower rate is desirable.


PO Purchases Growth Rate: ((PO Purchases Amount Current Period – PO Purchases Amount Previous Period) / PO Purchases Amount Previous Period) * 100. Percent increase or decrease in the total purchase amount between the current and previous time periods.

Use this KPI to identify increases or decreases in the total purchase amount.


Payables Leakage Rate: (Leakage Amount / Invoice Amount) * 100.
Invoice amount for invoices that were not matched to a purchase order or receipt, as a percentage of the total invoice amount.

Use this KPI to identify how much of your invoice amount has not gone through your procurement organization. A lower rate is desirable.

 

Executive Dashboard

Executive Dashboard

Executive Dashboard

Non-Contract Purchases
The Non-Contract Purchases report can be used to answer the following questions:
• How much does the company spend on purchases for which there are no
contracts, meaning pricing has not been negotiated with the supplier?
• What are the top items or categories for which there is no contract in place?
• What is the percentage of non-contract purchases to the total purchase amount, and
has this percentage increased or decreased over time?
• Which buyers and suppliers are responsible for the most non-contract purchases?

Contract Leakage
The Contract Leakage report can be used to answer the following questions:
• What was the amount purchased by the company that resulted in contract leakage?
• Has contract leakage increased or decreased over time?
• How much could have been saved if contract leakage had been prevented?

• Which buyers, suppliers, supplier sites, categories, or items are responsible for the contract leakage?


The Contract Leakage Report displays the amount for all standard, approved purchase orders where, for an 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 order. The report also displays (as leakage impact) the potential savings that could have been realized had contract leakage been prevented. This report can be used to identify where contract leakage is occurring, and where the greatest savings opportunities can be achieved if contract leakage is eliminated.

Payables Leakage
The Payables Leakage report can be used to answer the following questions:
• What portion of the total amount spent was processed by the purchasing
organization? (That is, how much of the total amount is not leakage?)
• With which suppliers does the payables leakage occur?
• Which invoice creators within the payables organization processed the invoices that
caused the payables leakage?
• How much has payables leakage increased or decreased over time?

The Payables Leakage report displays validated invoice amounts that have not been matched to a purchase order or receipt. These amounts are displayed as leakage. This report can be used to identify invoice amounts that are bypassing the purchasing organization, and to take action to decrease such purchases. Using the Payables Leakage
report, you can monitor invoices that are bypassing the purchasing organization and not using suppliers that are preferred by the purchasing organization.

PO Purchases
The PO Purchases report can be used to answer the following questions:
• What is the total purchase amount, and has it increased or decreased over time?
• Who are my top ten suppliers from whom I purchase the greatest purchase order
amount?
• What item categories represent my biggest purchases?
• What items represent my biggest purchases?


The PO Purchases report displays the amount for all approved standard purchase orders, blanket purchase agreement releases, and planned purchase order releases. This report can be used to determine with which suppliers and for which items money is being spent. It can be used to determine the largest suppliers for a specific item or category, as a tool to prepare for negotiations with suppliers, to identify purchasing
trends, or to improve supplier performance and relationships. (The report lists suppliers in descending order by purchase amount. In this way, you can see the top suppliers to which you’ve issued the greatest purchase order amount.)


Note: The PO Purchases Amount will not necessarily be equal to the
invoice amounts in the Payables Leakage report. Invoice and purchase
order amounts do not necessarily equal in any business practice.

Check these related Dashboards

  • Purchasing KPIs for Dashboard and Reporting – 1
  • Sourcing Management Dashboard | Purchasing performance dash
  • Dashboard Purchasing KPIs – 2
  • Procurement Performance Management Dashboard
  • Commodity Supplier Management Dashboard | Purchasing Dashboard

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