In a context where decisions must be made quickly and with solid grounds, having visibility into the performance of the procurement area is vital. But it's not about having dozens of KPIs, it's about choosing the ones that really move the needle.
Too much data paralyzes
Overloaded or hard-to-read dashboards generate more questions than answers. And worst of all: they push the team away from the habit of analyzing and acting.
How to select relevant KPIs
A good starting point is to ask: What would we like to improve in the next 3 months?
Some key indicators:
- OTD (On Time Delivery): percentage of on-time deliveries.
- Purchasing cycle time: from request to award.
- Savings rate: difference between initial budget and final awarded value.
- Share of new suppliers: an indicator of dynamism.
- Post-delivery incidents or non-conformities.
Visualization best practices
- Use simple charts (bars, lines, traffic lights).
- Show monthly trends, not just absolute values.
- Allow filters by business unit, purchase type or supplier.
- Update automatically from source systems (ERP, procurement platform, etc.).
More than measuring: sparking conversation
A dashboard is useless if it doesn't drive action. That's why it's key for KPIs to be accompanied by regular sessions to analyze them as a team and propose improvements.
Data doesn't replace management, it amplifies it.