Purchasing Performance Measurement
Sector of activity
Retailer specializing in fashion, cosmetics and delicatessen products
Project background
The company's economic profitability is based on a complex business model that includes KPIs from different tools and services, with no IT link between them. The elements are extracted from various BI reports, which are regularly updated by hand. They are then forwarded to the buyers, who compile all the data by supplier on XCELL sheets, to derive a profitability by category and distribution cluster.
The result is :
- an interpretation of profitability that is far too dependent on the various stages in the margin construction process,
- data quality and security not at all guaranteed,
- unreliable profitability accuracy, which calls into question the distributor's own economic performance.
The company wanted to secure and automate its information, so it had to build a complete reporting table, synchronizing and harmonizing its extractions.
Our approach
- Define with the Purchasing Department and Management Control all the indicators to be included in the calculation of purchasing performance, and the different scopes of application.
- Check with contributors that the data has been properly understood, correctly parameterized, accurate and complete.
- Build the control panel with the business referents; specify and write the rules of use.
- Set the managers of the new automatic performance queries in the organization.
- Verify the integrity and authenticity of data and results.
Our results
We enabled the Purchasing Department to define, with all the contributors, the exact constitution of its purchasing performance and its reading. The performance players were thus able to identify areas for work and negotiation much more easily and quickly. Information security and accuracy were assured.
This joint effort between the Purchasing and Management Control departments has also strengthened cohesion between the teams.