Description
Key performance indicators (KPIs) are management tools designed to monitor supplier performance and help meet the goals, objectives and service levels of the contract.
Objective:
The objective of this stage is to give guidance on what to consider when defining key performance indicators (KPIs) to ensure that contract obligations and service levels are achieved.
Output:
- List of Key Performance Indicators (KPIs)
Key performance indicators (KPIs) are management tools designed to monitor supplier performance and help meet the goals,
objectives and service levels of the contract.
The KPIs must help point you in a direction, improve performance levels,
identify breakdowns in a process and are a driver of continuous improvement for more efficient and sustainable procurement processes.
KPIs should be relevant to your department and should be simple to use. When developing the KPIs, five or six should be enough.
You don’t want to become overwhelmed and find yourself serving the KPIs rather than having them serve you.
Following KPIs shouldn’t be about hours of gathering data.
If you are establishing your first KPIs, start with just one or two so that everyone can understand them and their purpose.
You can always add more KPIs later.