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Supplier Cost Efficiency

Purpose -

Evaluates the cost efficiency of suppliers in delivering materials.

Operational Definition -

(Total Procurement Cost / Total Units Procured)

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Monthly

External References -

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

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