Procurement Dashboard
Procurement Dashboard
Most of the cost in your business comes through the procurement gateway. This is a key area to save cash. We’ve seen how a customer saved up to 20% of the annual net profit just by picking on the right costs to focus on in the procurement process.
Scope
The Procurement dashboard deals with managing the purchasing of goods and raw material in a business from the time the need is identified, to when the goods and services are received. Most of the data can be sourced from a standard Procurement or Accounts Payable module in your accounting or ERP system. It covers the processes of:
- Sourcing
- Requesting / Requisitioning
- Ordering
- Receiving and Returns
- Expediting
- Authorising Invoices
- Payment
The key dimensions used in this dashboard are:
- Supplier
- Cost Centre
- Item
- Type of Cost (Inventory/ Non Inventory)
- Responsible person
- Region
- Document Type
- Process Status
Spend Analysis
Spend analysis will allow you to quickly see what costs are coming into your organisation by some key dimensions:
The key metrics are :
- Value of Spend
- Value of Stock Spend
- Value of non-Stock Spend
- % BEE Spend
Supplier Performance
Poor performance in terms of quality and delivery can have huge downstream implications on your supply chain and ultimately your own business results. Poor supplier performance often leads to holding more inventory to buffer against higher levels of uncertainty. In addition, expediting or alternate supply costs can be significant.
The key metrics we provide are :
- % and # of Returns
- Value of Returns
- % and # of Defects Identified in QA
- Value of Stock Item Spend
- Value of non-Stock Item Spend
- % and # of On Time deliveries
- % and # of In Full deliveries
- % and # of On Time and in Full
- Average order Lead Time
- Average batch size
Negotiated Savings
Many times what is negotiated is not necessarily realised during the normal course of business for one or more of the following reasons:
- Agreed prices are not loaded onto the system
- The supplier supplies an alternate item that wasn’t on the Item master
- The supplier doesn’t update their prices list and this goes undetected
- What happens in practise in different to the contractual agreements
The key metrics we provide are :
- Actual Unit Price
- Negotiated Unit Price
- Variance between Actual and Negotiated Value
- % Price Increase/Decrease
- % Contract adherence
Lost Discounts
The dashboard tracks the value and percentage of discounts that could have been realised if the invoices were paid on time. Paying suppliers late often penalises you more as the early settlement discount is worth more than the interest you earn on that cash.
The key metrics we provide are :
- Actual Discount Realised
- Available Discount
- Variance between Actual and Available
- % Lost Discount
- Value of Lost Discount
Procurement Processing
Processing procurement transactions can be costly, inefficient and highly frustrating for staff who need goods and services from suppliers to deliver value to their customers. This is because:
- The process is manual
- Workflow processes get stuck with managers who are out of the office or just don’t round to approving purchase orders
- Inaccurate data results in unnecessary rework and delays in the process.
This section of the dashboard identifies the issues, lead times and bottlenecks.
The key metrics we provide are :
- Average Lead time to approve
- Average time from Requisition to Goods Received
- Average days to approve payment
- # of Reworks
- # of Expired Purchase Orders
- % of Orders bypassing the process
- # of Expedited Orders
- # of Order Received not Invoiced
- % of Late Payment
