Select the Sourcing and Procurement Measures That Matter

Published On:
January 17, 2025
Authored By:
APQC
Members-Only Content:

Increasingly, executives are recognizing sourcing and procurement’s role in achieving operational excellence objectives, driving innovation, and increasing shareholder value. To deliver on that promise, sourcing and procurement professionals must select the right measures to evaluate external suppliers’ performance as well as to assess internal process efficiencies. 

From APQC’s Sourcing and Procurement: 2024 Blueprint for Success, this article details the importance of selecting the sourcing and procurement measures that matter. These findings are supported by data from APQC’s Open Standards Benchmarking research in procurement and examples from successful organizations.

Note: APQC has identified recommended KPIs for procurement processes and activities. These indicators fall into the categories of cost effectiveness, cycle time, process efficiency, and staff productivity. For APQC members, the Resource Library contains Procurement Key Benchmarks that provide median metric values for each of these KPIs for many industries.