Smart-Purchasing.com: Best Practices:Process Management

Best Practices: Process Management
Benchmark Process Performance

Traditional	Best Practice
Ambiguous measures (e.g., is saving, year-over-year cost reduction, unit price reduction, avoided price increases?) Targets set as year-over-year improvement (internally focused) Performance reported by audit and believed by purchasing only	Cost reductions are directly eliminated from budget Use cross-industry best-in-class company benchmarks to set targets Quantify measures with clear definitions Have internal customers report/confirm performance Senior management, process management, and staff-level measures

Rationale
Can't manage what you don't measure
Details
Measure any targets in place Quarterly public reporting/review Annual external benchmarking

Best Practice | Case Study | Commentary