Target Baseline Value
Name Description Performance Value
Procurement KPIs and Balanced Scorecard Procurement has become an important part of any organization. Not only does it ensure acquisition at a reasonable price and quality, but it also supports risk management and compliance. Read more: https://bscdesigner.com/procurement-kpis.htm 91.59% 91.59
Finance If we satisfy the needs of our customers, what outcomes will our stakeholders see? 90.99% 90.99
Ensure cost saving and cost avoidance 90.99% 90.99
Cost saving, % Saving in the cost reduction as a percentage of total spend. 96.77% 6
Cost avoidance, % 87.5% 7
Procurement ROI 88.71% 500
Total cost to perform procurement 66.67% 40,000
% of procurement expenses in company spend 133.33% 1.2
Spend managed by procurement team, % Percentage of total company’s spend managed by the procurement team. 75% 60
Effective communication with procurement team 97% 97
Customer To achieve our vision, how must we look to our customers? 97% 97
Effective communication with procurement team 97% 97
Internal customer satisfaction, % 97% 97
Catalog-base purchase or on-contract purchases  80% 80
Emergency purchase, %  97% 3
Manage relationships with suppliers 92.01% 92.01
Internal Business Processes How are we going to satisfy customer needs and meet financial goals? 88.38% 88.38
Manage relationships with suppliers 92.01% 92.01
Number of suppliers High number results into unnecessary managerial costs, low number of suppliers imply the risk of dependency. 97.49% 4
Delivery lead time Total time to complete an order.
Supplier availability, % The ability of the supplier to address emergency orders.
Supplier satisfaction, % 90% 90
Compliance index, % 94.01% 94.01
On time delivery 99.8% 99.8
Pricing compliance 96.7% 96.7
Terms and conditions compliance 100% 100
% of returns 99.8% 0.2
Dollar value of returns 47.62% 22,000
% of defects 99.75% 0.25
Find the best suppliers according to the company’s needs 84.76% 84.76
Communication effectiveness
Delivery timeline 83.33% 5
Orders backlog 70.71% 2
Pricing 90% 90
Supply quality 95% 95
Learning and Growth How should the company learn and improve in order to achieve its vision? 90% 90
Improve skills of procurement team 80% 80
% of budget spent on training According to the report by Deloitte, the benchmark for this metric varies from less than 1% to about 4%. 75% 3
Diversity in skills, % This metric ensures that the procurement talents pass a comprehensive training program. 71.25% 71.25
Negotiation and conflict management training 66.67% 8
Emotional intelligence training 75% 3
Big data, predictive analytics training 83.33% 5
% of employees certified in procurement % of staff certified in procurement out of the total number of procurement staff. 80% 80
Understand the context of procurement 100% 100
Regular non-procurement briefing 100% 100
Maintain effective procurement architecture