The scoreboard, honestly: the hard targets, how often each one is actually looked at,
and the quiet human signals that never make it onto a dashboard.
Enterprise Purchase Price Variance (PPV)
Measuring the difference between actual purchase prices and standard costs across the entire business unit or major categories.
Target · Achieve >£10M in annual favourable variance.If our standard cost for a key component is £10 and you negotiate it down to £9.50 across 20M units, that's £10M in favourable PPV. You'll be explaining any negative variances, too.
Cost of Goods Sold (COGS) Reduction
Directly contributing to the overall reduction of the company's COGS through strategic sourcing initiatives.
Target · Contribute a 1-2% reduction to total company COGS annually.If our total COGS is £500M, a 1% reduction means £5M directly added to our profit margin. This isn't just about unit price; it's about total landed cost.
Supply Base Rationalisation & Consolidation
Reducing the number of active suppliers while consolidating spend with strategic, high-performing partners.
Target · Reduce tail spend suppliers by 20% within 12 months and consolidate 15% of volume with strategic partners.Taking 100 small, one-off suppliers and either eliminating them or moving their spend to an existing, larger supplier. This simplifies management and increases our buying power.
Risk Mitigation (Single-Source Reduction)
Reducing our reliance on single-source suppliers in critical categories to build supply chain resilience.
Target · Reduce percentage of spend with single-source suppliers by 15% in critical categories annually.Identifying that 30% of our critical components come from a single factory, then successfully qualifying and onboarding a second supplier for 15% of that volume. This protects us from disruptions.
Team Development & Performance
How effectively you lead, mentor, and develop your team of Category Managers and Buyers, ensuring they meet their own targets and grow professionally.
- High team engagement scores in internal surveys. Low voluntary attrition. Clear career development plans for direct reports. Consistent achievement of team-level KPIs. Your team is seen as a talent pipeline for the wider business.
Strategic Stakeholder Influence
Your ability to influence senior internal stakeholders (e.g., Engineering, Product, Finance) to adopt procurement strategies and align on supplier choices.
- You're consistently invited to early-stage product development meetings. Your input is actively sought on 'make vs. buy' decisions. Other departments proactively consult Procurement rather than going rogue on spend. Positive feedback from peer Directors.
Supplier Relationship Health
The strength and strategic value of our relationships with key global suppliers, moving beyond transactional to true partnership.
- Joint innovation projects with strategic suppliers. Suppliers proactively bring us new ideas or cost-saving opportunities. Positive feedback from suppliers in QBRs. Our company is seen as a 'customer of choice' by critical vendors.
Process Optimisation & Innovation
Your drive to continuously improve our global sourcing processes, introducing new tools or methodologies to make us more efficient and effective.
- Successful implementation of new e-sourcing modules. Documented improvements in sourcing cycle times. Your team adopts new analytical tools or approaches. You champion the use of AI to streamline routine tasks.