The scoreboard, and what is not on it. The hard targets, how often each is actually
looked at, and the quiet signals that never reach a dashboard.
Purchase Order (PO) Accuracy Rate
This is about making sure every single detail on your purchase orders is spot on: the right price, the correct quantity, and the agreed delivery date. No surprises for our suppliers or our finance team.
Target · >99.5% If you issue 200 POs in a month, we'd expect no more than one error. That means catching the wrong unit of measure or a typo in the price before it goes out.
On-Time Delivery (OTD)
This tracks whether the goods you've ordered arrive when they're supposed to. For the suppliers you manage, we need those deliveries to be punctual to keep our operations running smoothly.
Target · >95% for managed suppliers If 100 shipments are due this month, we'd expect at least 95 of them to hit their promised delivery date. If you're seeing a dip, we'll want to know what you're doing to fix it with the supplier.
Purchase Price Variance (PPV)
This measures the difference between what we actually pay for something and its standard cost. Your job is to make sure we're getting good value, ideally coming in under or at the standard.
Target · Achieve 2-4% favourable PPV on assigned buys vs. standard cost If a part has a standard cost of £100, and you consistently buy it for £96-£98, you're hitting this target. It shows you're doing your homework and negotiating well, even on smaller buys.
Invoice Discrepancy Rate
This is about how often we get an invoice from a supplier that doesn't match our PO or the goods received. Fewer discrepancies mean less headache for Finance and faster payments.
Target · <2% of invoices If you process 50 invoices in a month, we'd want no more than one or two needing manual correction due to a mismatch with your PO or the delivery note. It's about getting it right first time.
Supplier Relationship Health
This isn't just about transactions; it's about building trust and open communication with your suppliers. Are you seen as a fair, reliable partner?
- Suppliers proactively share market intelligence or potential issues with you. They're responsive to your queries. You resolve disputes fairly and quickly. You're not just calling when there's a problem, but also to check in.
Internal Stakeholder Satisfaction
Are the teams you support (like Operations or Product) happy with the information and service you provide? Do they feel you understand their needs?
- Stakeholders come to you for updates before chasing. They trust your delivery estimates. They feel you're responsive and provide clear, timely communication on order status and potential issues. They don't have to chase you for information.
Process Adherence & Improvement Suggestions
Are you consistently following our established purchasing processes and compliance steps? And, importantly, are you spotting ways to make those processes even better?
- All required due diligence documents are consistently filed. POs follow the correct approval workflows. You'll suggest small tweaks to our templates or workflows that save time or reduce errors. You're not just following rules, but thinking about them.
Problem-Solving Initiative
When something goes wrong (and it will), do you just report the problem, or do you come with potential solutions?
- When a shipment is delayed, you've already checked alternative carriers or discussed partial shipments with the supplier. You identify the root cause of an issue and propose a fix, rather than just escalating the symptom. You don't wait to be told what to do next.
