Managed Spend per Procurement Employee

Managed Spend per Procurement Employee

KPI Details

Managed Spend per Procurement Employee measures the total dollar amount which the Procurement function has spent on purchases in relation to the number of employees working for the Procurement Department over the same period of time. A relatively low value for this metric is typically related to a few common factors, including an overstaffed Procurement department, general inefficiencies within Procurement Department processes (e.g., miscommunications concerning procurement forecasts, misunderstandings over what products/services are needed, inefficient cost comparison research, etc.) and sub-par procurement employee training and performance.

KPI Definition

The total dollar amount the Procurement function has spent on purchases divided by the number of employees working within the Procurement function over the same period of time.

KPI Calculation Instructions Managed Spend per Procurement Employee?

KPI Formula :