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Procurement Efficiency

Purpose -

Measures the effectiveness of procurement processes in minimizing costs.

Operational Definition -

(Total Value of Procured Goods / Total Procurement Costs) × 100

Type of Metrics -

Business Outcome

Function -

Planning - Material

Associate Function -

Planning - Material

Desired Trend -

Higher the better

Recommended Frequency - 

Monthly

External References -

https://opsdog.com/categories/kpis-and-metrics/materials-management

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