• Majdi Sleimen 24/03/2015 01:44PM

    In Negotiation

    What are the most crucial KPIs that procurement needs to keep an eye on, and do you believe they have evolved over the years?

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  • Answers (10)

  • Samantha Coombs

    25/03/2015 05:49PM

    The best matrix I've used is the Morris KPI. Measures on the industry standards supported by CIPS. Company detail, Commitment, Communication, Quality, green, Competence, Service desk, Financial, Culture, CSR policy and Consistency. Email me for a copy.

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    V G Venkatesh can you pls mail me at [email protected] ... thats interesting :) thanks

    22/04/2015 12:49PM

    Nathan Dinsdale Hi Samantha - Would you mind forwarding me a copy please when you get a moment. I couldn't review your profile for an email contact, so I requested a connection request. Many thanks in advance. Nathan.

    27/04/2015 02:26PM

    David West (EntireBuyer) Hi Samantha, if you wouldn't mind sharing...I'll give you my thoughts. [email protected]

    27/04/2015 04:45PM

    Colonel John Chaika,MSc,MSSS,FCILT,MCIPS Hi Samantha, do forward a copy please. My email address is [email protected]

    27/04/2015 08:14PM

    Samantha Young Please email me too. Sounds very interesting [email protected]

    28/04/2015 12:53PM

    Philip Wood Hi Samantha, could you email me a copy at [email protected]

    28/04/2015 11:08PM

    Samantha Coombs Thanks for your responses. Copies sent direct to you. Please ensure you provide me with some feedback on how this tool works for you.

    29/04/2015 06:26PM

    Majdi Sleimen I would love to see what you have, please do forward a copy to my email: [email protected]

    06/05/2015 02:21PM

    Majdi Sleimen Samantha Coombs BSc CIPS This is a great KPI matrix, only to be used I suppose once per annum or so. Which, I would assume to be used mostly for on-boarding new suppliers or reevaluating existing partner relationships. The two types of KPIs I was mostly addressing were the types of real performance indicators that would need to be measured on every transaction, evaluating firstly your suppliers' performance, and secondly your buyers' performance.

    08/05/2015 05:33PM

    Majdi Sleimen (I wanted to share this with everyone rather than answering back to your email, just to get a others opinions). Samantha Coombs BSc CIPS thank you so much for sharing the document, it's a great resource to work with.

    08/05/2015 05:35PM

    Samantha Coombs Hi Majdi, Thanks for your comments. The Morris KPI can be used for more than what you think. The service delivery area is up to you what you enter depending on your organisation. It's been used to measure suppliers performance at quarterly reviews, in PQQs and other measuring activities. The matrix is also an 'evolving' document with a new version due soon. If you're looking to measure every transaction and buyer performance then I'd suggest you invest in a Procure-to-pay system where this type of data can be viewed in the dashboard. There are a few out there for all sized companies. If you're just looking for a template to measure a buyer and transaction then there are a few free ones on Google. Happy to hear others views and thank you for sharing yours. I'll take this onboard when we look at other more bespoke templates that may assist you with your tasks.

    08/05/2015 10:08PM

    Samantha Coombs Adding in Tony Morris to join in with this conversation so he can answer directly regarding your concerns, and other templates that serve your requirements. Appreciate your comments and I'm happy to hear from others views

    08/05/2015 10:15PM

    Noel O'Sullivan Hi can you please email me copy Samantha [email protected] sounds interesting

    18/05/2015 04:16PM

    Luiz Fernando Paganini Dear Samantha, could you please send it to me? [email protected] Thank you so much and best regards!

    18/05/2015 05:38PM

    Michael Thomas Hi Sam, please forward. Best [email protected]

    18/05/2015 10:19PM

    Joan Cuni HI Samantha, , please forward. Best [email protected]

    19/05/2015 02:04PM

    Samantha Coombs Sorry for the delay. I've sent you a copy Noel, Luiz, Michael and Joan. Thanks for reaching out!

    27/05/2015 11:19PM

    Syed Shiraz Ali Hi Sam, can I have a copy of that, please pass it on @ [email protected]

    02/11/2015 10:42AM

    Giles Lewis Hi Samantha - along with everyone else! I would be keen to see the Morris KPI's as well please - [email protected]

    02/11/2015 03:57PM

    Paul PEIGNAUD Hi Samantha, can you send me a copy of that: [email protected]

    20/11/2015 04:21PM

    Benoît Tournant May one of you email me the document @ [email protected]? Many thanks!

    05/01/2016 08:27PM

    Samantha Coombs The Morris KPI matrix will be shared with you and thanks for the interest.

    15/01/2016 11:05PM

    Christine Babajide Hi Samantha, please can you email me a a copy of the Morris KPI matrix. [email protected] Thanks

    03/03/2016 11:34AM

    Ipsita Suman Hi Samantha, can you please email me a a copy of the Morris KPI matrix at [email protected] Thanks!

    26/09/2016 11:33AM

    Bhavik Jani Hi Samantha, can you please share the copy of the Morris KPI matrix with me at [email protected] Thanks a lot!

    30/09/2016 11:39AM

    Samantha Coombs Hello, thank you for the interest and apologies for the delay in responding. I will send each of you an email with details of acquiring the latest version of the Morris KPI matrix. Thanks and best wishes

    21/10/2016 03:27PM

    Carly English Could you please email me a copy to Carly.en[email protected]

    21/06/2017 07:49PM

    Majdi Sleimen I like how this thread is still going on after 2 years of posting.

    10/07/2017 08:59PM

    Samantha Coombs Seems the Morris KPI is a big hit with some people! Thank you all!

    20/07/2017 02:03PM

  • Gary Bond

    27/03/2015 02:41PM

    I do not think the most crucial KPI's have changed, and I honestly believe the most important are based around the 5 Rights of Purchasing, the basic foundation of everything else. As with anything built upward, the strength of the foundation determines the result of the finished thing, and Supply Chain is no different.

    Procurement needs to be first measured on these basic principles, and as mentioned, these have not changed. What has evolved, however, is the number of KPI's, and which KPI's are important to a business and these are generally affected by Social and Economic happenings... you should see how many big clothing and retail manufacturers suddenly have Sustainability and Ethical KPI's instilled in the Procurement Dept now :-)

    With the many KPI's out there these days, we can often see Procurement teams no longer getting the basics right, chasing "fashion" KPI's over the tenents of Purchasing.

    In my opinion anyway :-D

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  • Nick Drewe

    21/04/2015 01:52PM

    As Gary alludes, the trouble with KPIs is that they become the centre of the universe for that employee/function and all else is superfluous. As an example, we visited a leading Aerospace company. Their employees had a KPI for how many reverse auctions they ran. What rapidly occurred was that the employees would split auctions into many, and would start running auctions on lawn mowing the tiny patch of grass in front of the office and on items like toilet paper!! This is not valuable or efficient working practice and it stemmed from a poor use of KPIs.

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    Majdi Sleimen That sure is a definitive example, and is unfortunately the reality to many of these set KPI criteria. What would be your suggestion for trying to establish certain KPIs in a company's sourcing/procurement function? Is it just a matter of implementing the consolidated set and the rest to be industry specific, or are there more that can be horizontally implemented?

    23/04/2015 05:26PM

  • Michael Tucker

    28/04/2015 12:05AM

    Maddi Hi, KPI's need to be leading indicators, while the 5 rights are important they are lagging indicators. I agree with the philosophy of KPI's being Measurable, Simple and Few (MSF), but I would like to add to that list MEANINGFUL to both. The KPI's should lead to increased market share for both you the customer and "they" the supplier and if possible you both to increase margin at the same time. The best KPI's will strengthen the entire supply chain not just you the customer. "Industrial cleverness" cannot take place in company isolation, the entire supply chain is the strength of all those companies demonstrating sustainable success. Complacency in the supply chain that is no KPI's ("we can do it alone") will lead to the demise of margin and market share. KPI's drive, enshrine and provide traction for "industrial cleverness"

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  • Ashley Collins (MCIPS)

    27/04/2015 03:32PM

    Determining what the most crucial elements are as they relate to what is being measured can be summed up by the acronym S.M.A.R.T. (Specific / Measurable / Achievable / Realistic / Time bound). I have seen far too many organisations measuring criteria (KPI's) that do not fall within these requirements creating a cottage industry that adds no value to the relationship. As for the KPI's themselves, they could represent anything as criteria for measure however when mutually agreed upon they must represent what is fundamental to achieving a value-based outcome.

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    Majdi Sleimen The SMART approach is a brilliant way to evaluate KPI criteria, thank you for sharing your thoughts. What do you specifically mean by mutually agreed upon? As in the customer and supplier? or the buyer and the manager?

    03/06/2015 07:42PM

    Ashley Collins (MCIPS) Hi Majdi...mutually agreed makes reference to your business and the supplier. Key to the success of KPI criteria is both parties subscribing to the KPI's being deployed in conjunction with how they are to be measured.

    23/06/2015 06:27PM

  • Matthew Davis

    25/03/2015 08:31AM

    In some areas, sets of KPIs are now being consolidated. Certainly when looking at supply chain performance and risk - and KPIs down the tiers - some of the tech now available pulls various analytics on issues like sustainability, financial performance, lots of different risk elements, and then visualises that analysis. What procurement functions are left with is a dashboard and red/amber/green indicators on the key areas that matter - rather than picking individual KPI data to focus on.

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  • Roshni Ranjan

    02/11/2015 03:48PM

    Samantha can you send Morris KPI to me please and I will be sure to provide you with my comments.

    My email address is [email protected]


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  • Majdi Sleimen

    23/04/2015 05:33PM

    An extension to this question would be: How would you go about measuring these KPIs and making sure that employees are not squandering their time trying to hit certain KPIs that might not return any results, yet alone swindle their way to gain better rankings on their KPIs?

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  • Samantha Coombs

    01/04/2015 08:03PM

    Majoi, if ever you are in doubt then I would suggest you look the principles supported by the CIPS foundation. www.cips.org
    Best of luck!

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  • Majdi Sleimen

    27/03/2015 04:22PM

    Thanks for all who shared their thoughts. Gary, thanks for answering the second half of the question.

    Do you believe that this evolvement in KPIs, beyond the 5 rights or consolidated set, are really things that can return quantified results? Gary you labeled them as "fashion" KPIs, giving me a sense that you seem to devalue their importance.

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    Gary Bond Majdi I do not devalue their important, I just do not deem them MORE important. To give a simple example a common KPI in companies now, especially those with Sourcing teams is PPV, Purchase Price Variance, and a common result is an abandonment of right quantity and right time, with teams buying more than needed to obtain cost reduction. They meet their PPV KPI, but make it difficult for operations to meet inventory level, stock turn KPI's etc. You also tend to see Sourcing teams become fixated on piece price over TCO, total cost of ownership, which again will generate hardship on those with KPI. The newer KPI's tend to be more specific, and reduces cohesion between departments. The 5 rights are cross functional and make it necessary to work with all departments, so the business as a whole benefits, the former generates silos and creates competition between departments, all pulling in different directions to hit their specific KPI.

    28/03/2015 09:25AM

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