Dear Pooja and others,
Following are the KRAs of the purchasing department:
Total procurement expenditure as a percentage of sales revenue
Procurement operating expenses as a percentage of total procurement spend
Number of procurement staff as a percentage of the companys total staff
Sales revenue per procurement employee
Total procurement spend per procurement employee
Number of active suppliers per procurement employee
Procurement spend per active supplier
Cost of operating the procurement function per active supplier
Percentage of active suppliers for 50%, 75% and 90% of procurement spend
Percentage change in the number of active suppliers in a reporting period
Percentage of total spend with any deemed sensitive suppliers, e.g. local suppliers, small companies etc.
Percentage of total company purchases handled by the procurement department
Comments on the KRAs: - Setting KRAs is one thing and its actual attainment is another. For this, you need to train your procurement personnel extensively. For this first, you have to do an audit of the purchasing department. After doing an audit, find out whether your procurement professionals are competent to handle the tasks of a higher order. If not train them, coach them and then set the KRAs.
My Training and Consulting in the field of Supply Chain Management (SCM): - I conduct training programmes on various topics and also provide consulting services on the subjects related to the SCM. To know more about my training activities in this field, you may click the following links and download the respective documents:
Dinesh V Divekar - Procurement Faculty
Programme Structure for Various Training Programmes in Purchase and Inventory Management
Thanks,
Dinesh Divekar
+91-9900155394
dineshdivekar(at)gmail(dot)com