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Setting Goals / KPI’s for your Purchasing Department

Establish, monitor, and follow department goals / KPI’s

It is the start of the new year. You have most likely made some New Year’s resolutions for your personal life, but have you made any goals in your professional life?

In our business, we have the opportunity to work with many different clients and we often ask if there are any established goals. Surprisingly, some of the responses received are that there are not any goals established. Every department needs goals. Some examples of your profession might be:

  1. Cost Savings by Buyer, product line, or other measurements.
  2. Vendor reductions – the more vendors you maintain and use the higher your costs
  3. Vendor quality improvements
  4. Vendor on-time delivery
  5. Reductions of Inventory

OK, so now you have established some goals you need a way to measure and track the goals: If you are not utilizing ERP or other business software or if your business software does not provide tools to help you monitor and measure your goals, you probably will not meet your goals. Manual or antiquated methods of tracking goals include

  1. Excel or other spreadsheet tools
  2. Word Processor
  3. Handwritten notes

Automated methods include

  1. Many Software packages include methods and tools to allow you to easily monitor and track your department goals.
  2. Custom Reports or queries

Don’t spend more time manually trying to track your goals than actually working on your goals. If you are,  you are probably working hard to gather the information or you need to evaluate a new #ERP software that can help you manage but more importantly meet your goals and objectives.

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