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Research impact areas (Unpleasant Past Experiences (iSupplier (Supplier…
Research impact areas
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Savings and Performance
CEO/CPO
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Do you frequently analyse Procurement ROI (Procurement ROI = Annual cost savings / Annual procurement cost)
ROI = (Cost Saving + Cost Avoidance) / Cost of Purchasing Operation
% Cost Avoidance
% Cost Savings
% Total Procurement ROI
% Completed Projects with ROI (Procurement Initiatives)
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iSupplier
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total suppliers, active suppliers, spend with strategic suppliers as a percent of total spend,
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iSource
total savings as a percent of purchasing spend
(Managed vs. Total Spend – This KPI compares the money spent on managed purchasing processes (with long term suppliers with who the company has a relationship) to the total amount spent by the company (minus staff costs) over a quarter)
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supply chain department ROI on cost avoidance , Cost Savings
% cost saving on each order via negotiations.% Completed Projects with ROI
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Dollar value of the negotiated hard savings or cost avoidance realized due to the efforts of procurement staff
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