Orpheus, a McKinsey company - Digital Backbone

Digital Backbone &
Visualization

more about
Digital Backbone & Visualization
Orpheus, a McKinsey company - Impact Tracker

Data Connectivity &
Transformation

more about
Data Connectivity & Transformation
Orpheus, a McKinsey company - Data Categorizer

Data Cleansing &
Categorization

more about
Data Cleansing & Categorization
Orpheus, a McKinsey company - Spend Control

Dashboards &
Insights

more about
Dashboards & Insights
Orpheus, a McKinsey company - Category Analytics

Analysis &
Ideation

more about
Analysis &
Ideation
Orpheus, a McKinsey company - Impact Tracker

Integrations &
Ecosystem

more about
Integrations & Ecosystem
Orpheus, a McKinsey company - Advisory Center

Alerting &
Recommendations

more about
Alerting & Recommendations
Orpheus, a McKinsey company - Impact Tracker

Impact &
Savings Tracking

more about
Impact & Savings Tracking

What is meant by Performance Measurement in Purchasing?

The measurement of procurement performance is part of corporate measurement of success. This includes not only the measurement of procurement cost savings (in terms of cost reductions); arbitrary key figures in purchasing, which were defined by management as goals to be obtained (e.g. on a scorecard/balanced scorecard/procurement scorecard) and whose achievement is to be measured based on actual figures (ideally automated) are also included.

There are different synonyms for the term measure of success, such as:

There are typically at least three different types of successes in regard to performance measurements in purchasing:

In principle, any target value or KPI can be measured by means of key figures that can be defined as successful. In purchasing it is common and useful, for example, to define and thereby measure improvements to non-monetary key figures such as the Maverick Buying Quote (compliance) or the number of suppliers, or to use KPIs in regards to quality and supply capability.

The measurement itself is carried out via highly specialized procurement performance management systems such as SpendControl from Orpheus. In addition to containing savings and spend analytics, these systems also consist of numerous reports and KPIs for the ongoing and automated measurement of purchasing successes. The procurement controlling department is responsible for performance measurement, thereby making it a functional part of strategic purchasing.

In this sense, performance measurement is also a connection between the purchasing and the finance department. The coordination between the two functional areas takes place via planned corporate goals. These are broken down into purchasing objectives using a procurement scorecard, for example, so their admission and degree of achievement can be measured. A study published by Orpheus and EY pertaining to the coordination of the CPO and CFO domains, as well as in regard to performance measurement in purchasing can be downloaded using the following link: Procurement Performance Management today

Dashboards & Insights - Advanced Analytics, Transparency & KPIs

Dashboards & Insights

Dashboards & Insights is a complete Procurement Controlling and Spend Management solution. It provides all functions, KPIs and measures needed for professional Spend Analysis.

With its standardized ERP interfaces you can connect the spend cube of Dashboards & Insights within a short time frame to any ERP system (e.g. SAP, Navision, Oracle etc.).

Request a Demo for Dashboards & Insights more about Dashboards & Insights

Search Glossary

Orpheus Glossary

Here you will find important terms related to spend management explained in a clear way. Small knowledge base for quick information or in full for your further education. This controlling glossary is constantly being expanded and improved.

Orpheus Blog

Read blog articles about spend management, initiative management and data management in procurement, or other articles from our experts.

Study: Procurement Performance Management today
How do I manage to discover new efficiencies and savings potential on a regular basis and how can I use intelligent performance management systems ...

Connect with our experts