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Performance Measurement and Incentive Systems in Purchasing

Performance Measurement and Incentive Systems in Purchasing
Author: Erik Hofmann
Publisher: Springer Science & Business Media
Total Pages: 192
Release: 2013-10-01
Genre: Business & Economics
ISBN: 3642384390

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In recent years, purchasing performance measurement have steadily gained in importance in theory and practice. Yet, in many cases, the focus still remains on cost items, especially savings. Moreover, reported performance ratios in purchasing are frequently called into question in terms of their amount and efficacy. Most of the time, there is no tie-in at all with staff compensations. To meet these and other challenges, this book presents a holistic approach for purchasing performance measurement and the incentive systems associated with it. The following topics are dealt with in detail: • Purchasing performance measurement on the level of commodity groups and the procurement organization • Supplier evaluation and performance measurement on the level of the buyer-supplier relationship • Comprehensive systems for purchasing performance measurement, such as the procurement value added and the purchasing balanced scorecard • Performance-oriented incentive systems and bonus payments for buyers, procurement organizations and suppliers Readers are thus provided with comprehensive guidelines for the implementation and realization of sustained performance measurement and incentivization in purchasing.


Purchasing Performance

Purchasing Performance
Author: Mr Derek Roylance
Publisher: Gower Publishing, Ltd.
Total Pages: 200
Release: 2012-09-28
Genre: Business & Economics
ISBN: 1409458199

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If the only measure of your organization's purchasing performance is forcing down prices from suppliers then not only is your purchasing team failing to add value, they may also be damaging your supply chain and the medium to long-term competitiveness of your organization. Derek Roylance's Purchasing Performance - Measuring, Marketing and Selling the Purchasing Function is a blueprint to help you identify the performance measures and marketing expertise that matter for your purchasing team. Buyers don't exist in isolation but often find it easier to focus excessively on the external market place leading to neglect and subsequent alienation of their internal customers. The book recommends operating the function as a business within a business. Part of this approach is to increase market share by better internal marketing and selling of their procurement expertise. The author provides practical methods for measuring purchasing performance and then communicating effectively - to the whole organization - the contribution the function can make to increase competitive advantage, profitability and all-round efficiency. In an intensely competitive world marketplace, purchasing can only achieve its true potential if it can persuade top decision makers that it will pay them to involve their procurement specialists in all major strategic decisions; the book shows how to achieve this top-level influence.


Purchasing Performance

Purchasing Performance
Author: Derek Roylance
Publisher: CRC Press
Total Pages: 170
Release: 2016-04-08
Genre: Business & Economics
ISBN: 1317073142

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If the only measure of your organization's purchasing performance is forcing down prices from suppliers then not only is your purchasing team failing to add value, they may also be damaging your supply chain and the medium to long-term competitiveness of your organization. Derek Roylance's Purchasing Performance - Measuring, Marketing and Selling the Purchasing Function is a blueprint to help you identify the performance measures and marketing expertise that matter for your purchasing team. Buyers don't exist in isolation but often find it easier to focus excessively on the external market place leading to neglect and subsequent alienation of their internal customers. The book recommends operating the function as a business within a business. Part of this approach is to increase market share by better internal marketing and selling of their procurement expertise. The author provides practical methods for measuring purchasing performance and then communicating effectively - to the whole organization - the contribution the function can make to increase competitive advantage, profitability and all-round efficiency. In an intensely competitive world marketplace, purchasing can only achieve its true potential if it can persuade top decision makers that it will pay them to involve their procurement specialists in all major strategic decisions; the book shows how to achieve this top-level influence.


How to Measure Performance of the Purchasing Function

How to Measure Performance of the Purchasing Function
Author: Filippos Siakavaras
Publisher: BoD – Books on Demand
Total Pages: 286
Release: 2021-06-17
Genre: Business & Economics
ISBN: 3754309307

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The purchasing function has been put in a leading position in many business sectors in recent years in terms of its impact on a company's competitiveness and consequently the company's value. Therefore, it is crucial to understand how the activities of this function are being accounted for and measured. This book addresses the hypothesis if the currently existing performance measuring tools and the role given to the purchasing function are valid and sufficient. Based on best practices (e.g. automotive) it investigates on what processes purchasing departments should focus on. The findings during a conducted research and the generated results have been taken as the basis for deriving an example for measuring the contribution of the purchasing function and its performance. It was found that the methodology was successful in measuring the contribution while making the influenced factors transparent. An applied case study based on best practices delivered the basis for a new target setting system in the form of measurement criteria for purchasing departments. This book presents a derived system that is valid and applicable in a real life environment. This book presents an adjusted way of measuring the performance of purchasing departments by introducing new ways. A methodology for the objective assessment of the contributing factors by defining the role of purchasing, its tasks, goals and direct and indirect influence on the company's value by using a scorecard system. The proposed system has been put in practice for validation. This book provides a significant step in understanding performance measurement of the purchasing function. The proposed methodology constitutes a scientific advancement, successful in quantifying (through a catalogue of criteria) the measurement of a purchasing department's performance, for the assessment of the purchasing function's contribution to the company's value (financial and non-financial contributors). Further views on the current role of purchasing in the automotive industry, if its role should be changed in the future as well as how the results of purchasing influences the company's performance are contained, too. In summary, this book is about increasing the awareness of the influence on capabilities and the impact of purchasing actions. The development of a criteria catalogue to measure correctly the monetary and non-monetary influence of the activities of purchasing to drive the company's value in a positive way.


Successful Purchasing in a Week

Successful Purchasing in a Week
Author: Stephen Carter
Publisher:
Total Pages: 96
Release: 1998
Genre: Purchasing
ISBN: 9780340712061

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A summary of the requirements of modern purchasing for buyers and all those involved in the buying process. Topics include: producing a winning strategy; selecting, managing and motivating key suppliers; minimizing costs in the supply chain; measuring performance; and continuous improvement.


Transforming Performance Measurement

Transforming Performance Measurement
Author: Dean Spitzer
Publisher: AMACOM
Total Pages: 312
Release: 2007-02-09
Genre: Business & Economics
ISBN: 0814430090

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It's no secret that you can't improve your organization's performance without measuring it. In fact, every function, unit, process, and the organization as a whole, is built and run according to the parameters and expectations of its measurement system. So you'd better make sure you're doing it right. All too often, performance measurement creates dysfunction, whether among individuals, teams, or across entire divisions and companies. Most traditional measurement systems actually encourage unhealthy competition for personal gain, creating internal conflict and breeding distrust of performance measurement. Transforming Performance Measurement presents a breakthrough approach that will not only significantly reduce those dysfunctions, but also promote alignment with business strategy, maximize cross-enterprise integration, and help everyone to work collaboratively to drive value throughout your organization. Performance improvement thought leader Dean Spitzer explains why performance measurement should be less about calculations and analysis and more about the crucial social factors that determine how well the measurements get used. His ""socialization of measurement"" process focuses on learning and improvement from measurement, and on the importance of asking such questions as: How well do our measures reflect our business model? How successfully are they driving our strategy? What should we be measuring and not measuring? Are the right people having the right measurement discussions? Performance measurement is a dynamic process that calls for an awareness of the balance necessary between seemingly disparate ideas: the technical and the social aspects of performance measurement. For example, you need technology to manage the flood of data, but you must make sure that it supports the people who will be making decisions and taking action crucial to your organization's success. This book shows you how to design that technical-social balance into your measurement system. While it is urgent to start taking action now, transforming your organization's performance measurement system will take time. Transforming Performance Measurement gives you assessment tools to gauge where you are now and a roadmap for moving, with little or no disruption, to a more "transformational" and mature measurement system. The book also provides 34 TMAPs, Transformational Measurement Action Plans, which suggest both well-accepted and "emergent" measures (in areas such as marketing, human resources, customer service, knowledge management, productivity, information technology, research and development, costing, and more) that you can use right away. In the end, you get what you measure. If you measure the wrong things, you will take your company farther and farther away from its mission and strategic goals. Transforming Performance Measurement tells you not only what to measure, but how to do it -- and in what context -- to make a truly transformational difference in your enterprise.


Purchasing Performance Measurements

Purchasing Performance Measurements
Author: Mel Pilachowski
Publisher: PT Publications Incorporated
Total Pages: 118
Release: 1996
Genre: Business & Economics
ISBN:

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Use this book to gain and maintain the competitive edge you need to stay ahead of the competition and to use measurements to continuously improve. The topics covered include "How to Gain Management's Commitment and Support", "How to Implement, and Why", "What to Measure, and Why", and "How to Use the Business Performance Grid".


Improving Purchase Performance

Improving Purchase Performance
Author: Russell Syson
Publisher: Financial Times/Prentice Hall
Total Pages: 276
Release: 1992-06-01
Genre: Purchasing
ISBN: 9780273600268

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Purchasing for Profit

Purchasing for Profit
Author: Myron A. Carpenter
Publisher:
Total Pages: 140
Release: 1979
Genre: Purchasing
ISBN: 9780875271996

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