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Total evaluation – Purchasing Performance, Quantitative Objects etc.
Total evaluation of purchasing performance involves assessing the overall effectiveness of the purchasing function in meeting the organization’s goals and objectives. The evaluation should cover various aspects of the purchasing process, including cost savings, supplier performance, quality, delivery, and innovation.
Here are some quantitative and qualitative measures that can be used to evaluate the performance of the purchasing function:
Cost savings: This is one of the most commonly used measures of purchasing performance. It involves comparing the actual purchase price of goods or services to the market price or the price of similar goods or services in the past. The savings can be expressed as a percentage or a dollar value.
Supplier performance: This measure evaluates the performance of suppliers based on factors such as on-time delivery, quality of goods or services, and responsiveness to inquiries and complaints.
Quality: This measure evaluates the quality of the goods or services purchased by the purchasing department. It can include factors such as product reliability, conformity to specifications, and defect rates.
Delivery performance: This measure evaluates the ability of suppliers to deliver goods or services on time, according to the agreed-upon delivery schedule.
Innovation: This measure evaluates the ability of suppliers to provide innovative solutions that improve the efficiency or effectiveness of the purchasing function.
In addition to these measures, it is also important to evaluate the effectiveness of the purchasing department in managing supplier relationships, negotiating contracts, and managing risk. Qualitative measures such as customer satisfaction surveys, feedback from suppliers, and performance reviews can also be used to evaluate the performance of the purchasing function.
