Expectation vs. Reality: 7 KPIs for Purchasing to Go Far Beyond Assumptions

“Expectation vs. Reality” is one of the most well-known memes on the internet today. On one side, an image represents what the person infers or imagines. On the other, reality, which is usually very different from the imagination.

Expectation vs. Reality

But what is the relationship between a meme and a KPI?

In today's post, we share with you 7 KPIs for the purchasing area to go beyond assumptions and actually recognize the scenario in which it is stepping.

Check it out!

Assumptions vs KPIs

We can draw a parallel from this reasoning meme and compare, in the corporate world, assumptions vs KPIs.

On the one hand, there are assumptions based on perceptions. On the other, there is a tool that presents companies with data on the real situation of the business.

In the digital world, companies that have assertive and clear KPIs have a competitive edge in the market.

This is because, with the data in hand, it is possible to analyze and identify points for improvement and define the most assertive strategies.

What are Key Performance Indicators (KPIs)?

Key performance indicators (KPIs) are important metrics for the entire company management process, as they allow decision-making in the sectors to be based on the data presented and not on assumptions.

In the purchasing area, some metrics must be analyzed to contribute to business growth and, below, we explain each of them.

What are the most relevant KPIs for B2B purchasing?

1. Saving

The first important KPI for buyers is the saving, essential for the financial area, which analyzes the savings achieved in acquisitions.

This means the cost avoided by closing a purchase for a lower value than budgeted.

This is a way of analyzing the team's performance in negotiations with suppliers, with the aim of reducing costs and generating profits.

2. Level of deliveries

The second indicator is the level of deliveries, which identifies return rates in relation to the total number of products purchased.

This way, it is possible to observe the percentage of defective goods.

3. Lead time

Already lead time, the third KPI used in the purchasing area, allows you to evaluate the duration of each stage of the purchase, such as search, supplier selection, quotation analysis and product delivery, proposing the necessary adjustments for the best results for the company.

4. Price evolution

The fourth indicator is the price evolution, which analyzes the fluctuation of values ​​in a given period, throughout the purchasing process.

5. Productivity

A productivity It is the fifth KPI, which helps the sector identify adjustments to reduce the operational burden on buyers.

6. Customer satisfaction

The sixth indicator, in turn, is the customer satisfaction and can be measured through a periodic satisfaction survey.

7. Cost of supplies

Lastly, but not least, is the cost of supplies, which is responsible for comparing the volume of purchases and sales to indicate the percentage of item costs in relation to their sales.

With so many metrics and data, technology is essential to ensure that no business information goes unnoticed.

Therefore, using specific solutions and tools is an indispensable key for purchasing areas.

And you, do you already use KPIs to move beyond expectations and see reality? Comment here!

This article was written by Diogo Morgado, product manager at Mercado Eletrônico, and published in Estadão.

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