Production Schedule Adherence

Measures the total costs associated with procuring goods and services from suppliers.

What it Measures ?

Compares actual procurement spend vs budgeted spend.

Relevant StakeHolders 

Procurement Controller, Finance Head

Why it Matters ?

Reduces procurement inefficiencies.

In-depth Use Case / Real-world Example

A company manufacturing machinery calculates Procurement Cost Analysis by evaluating the total procurement costs, including supplier pricing, shipping, handling, and administrative expenses. For example, if the company spends ₹15 crore on procurement in a year, it assesses the costs relative to the value of the goods sourced to identify potential savings or inefficiencies.