July
14
2008
The report highlights that the ‘Best-in-Class’ enterprises put a greater significance on implemented / realised cost reduction savings and supplier performance (price, delivery, quality, service, etc.), whilst the Procurement ROI (savings / operating costs) and spend under management rank higher with ‘Average’ and ‘Laggards’.
Top 10 Procurement Key Performance Indicators (Source: Aberdeen Group, February 2008)
KPI (% Selected)
- Identified cost reduction savings (72%)
- % of total spend under management (64%)
- Cost avoidance (58%)
- Implemented / realized cost reduction savings (55%)
- Procurement ROI (savings / operating costs) (52%)
- % of suppliers = 80% of spend (51%)
- Supplier performance (price, delivery, quality, service, etc.) (49%)
- Procurement spend as % of revenue dollars (46%)
- Requisition, PO or invoice transaction volume (34%)
- Procurement spend per procurement employee (33%)
July
8
2008
KPI Library Highlight brings you the most popular Key Performance Indicators (KPI) based on statistics from the KPI Library community.
This subject of this highlight is return on investment a.k.a. ROI.
Return on investment (ROI) is the ratio of money gained or lost on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss. The money invested may be referred to as the asset, capital, principal, or the cost basis of the investment. ROI is usually given as a percent rather than decimal value.
ROI as a KPI is used in financial aspects of business processes, especially when investing money, for example in initiatives, programs and/or projects. Most of these initiatives should have a positive planned ROI before starting. During the implementation/execution of these initiatives, return on investment should be closely watched; either the money gained may change due to changes in the forecast, or the money invested due to for example budget overrun.
June
24
2008
Measured Performance - Supply Chain / Value Chain Improvement is a blog bringing lessons learned in the definition, measurement,management and improvement of global commercial and government supply / value chains.
June
19
2008
KPI Library News, June 19 2008
The best rated KPIs in the category ‘Finance and Legal’ as rated by our users are as follows:
- 1- [new] Cash dividends paid
- 2- [new] Share price
- 3- [new] Profit per product
- 4- [new] Return on Investment (ROI)
- 5- [4] Net Change in Cash
- 6- [5] Operating margin
- 7- [3] EBITDA
- 8- [1] EBIT
- 9- [new] Profit per staff
- 10- [6] Cost of goods sold (COGS)
Five new entries are positioned in this top 10, with four new entries leading. Within the brackets we have included the previous position of this rating. KPIs that were previously in the top 10 but have dropped out are:
- Gross profit
- Gross profit margin
- Cost of office space per employee
- Operating income
- Variable costs
If you would like to contribute KPIs or rate KPIs in the library, please join us.
