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Procurement refers to the overall process of acquiring a product or service. Depending on the circumstances, it may include some or all of the following: identifying a need, specifying the requirements to fulfill the need, identifying potential suppliers, soliciting bids and proposals, evaluating bids and proposals, awarding contracts or purchase orders, tracking progress and ensuring compliance, taking delivery, inspecting and inventorying the deliverable, and paying the supplier.


KPIs in ‘Procurement’

Cycle Time of Purchase Order

How many days have you taken to prepare a Purchase order and submitted to Supplier?

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This KPI is most used for:
Operational Excellence
This KPI is most used for:
Operational Excellence

Average time to procure

Average time to procure an item. Time lag between request for procurement and signing of contract or purchase.
This KPI is most used for:
Operational Excellence

On-Time Delivery, Commit Date, Supplier

On-time delivery – % of deliveries that are on time
This KPI is most used for:
Operational Excellence
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