From the course: Measuring Team Performance
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Procurement performance
From the course: Measuring Team Performance
Procurement performance
- Your procurement group is responsible for sourcing the raw materials that go into your products, as well as the indirect materials required to run your business. They also manage your suppliers. This group is considered a support activity on the value chain. Measure the procurement team on how well they're managing costs and supplier performance. Measure the cost of inputs in total and see if the cost of making your products is going down or up. Also, measure the inputs on a category level to track specific input costs. I worked with one client that manufactured industrial gases like oxygen to sell to manufacturing firms. We worked with their procurement team to understand what was driving their costs. We looked on a category basis for the inputs that went into the machines they sold. We looked at the industrial valves. We looked at the pipes. We looked at the custom tanks and we looked at the electronic…
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