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Procurement KPIs
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Order Delivery Lead Time

Production Schedule Adherence

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Category:  
Operational

Measures the time between placing an order with a supplier and receiving the goods.

What it Measures ?

How long it takes to get an order after placing it.

Relevant StakeHolders 

Logistics, Procurement Teams

Why it Matters ?

Reduces delays in supplier delivery lead times.

In-depth Use Case / Real-world Example

A company that manufactures electronic circuits calculates Order Delivery Lead Time by measuring how long it takes from placing an order for components to receiving them. If the company orders components on the 1st of the month and receives them by the 10th, the lead time is 9 days. Shortening this lead time helps reduce inventory holding costs and keeps production running smoothly.

KPI Definition

Business Value

Movement Direction

Sample Formula

Time from Order Placement to Delivery

Should Aim For
1
2
3
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Measures the percentage of purchase orders that are issued without errors in terms of quantities, prices, and specifications.
Urgent Procurement Percentage
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Supplier Fulfillment Efficiency
Measures how efficiently suppliers meet order requirements, including quantity, quality, and delivery schedules.
Sourcing Cycle Time
Measures the time taken to complete the sourcing process, from identifying suppliers to awarding contracts.
Invoice Rejection Rate
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Spend Managed Under Contracts
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e-Procurement Adoption Rate
Measures the percentage of procurement activities conducted through electronic or digital platforms rather than manual processes.
Procurement Efficiency Cost
Measures the total cost of procurement activities in relation to the value of goods and services procured.
Order Delivery Lead Time
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Active Supplier Count
Measures the number of suppliers actively engaged in providing goods or services to the company.
Invoice Accuracy Rate
Measures the percentage of invoices received that are free from errors in terms of pricing, quantities, and terms.
Contract Approval Cycle Time
Measures the time taken to review, negotiate, and approve contracts from initiation to final approval.
Order Accuracy Percentage
Measures the percentage of orders that are received as requested without any discrepancies or errors.
Supplier Rework Rate
Measures the percentage of goods received from a supplier that require rework or corrections due to quality issues.
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