News & Publications Reports Survey Results

Key Performance Indicators, Savings and P-Cards

Results based on a sample size of thirteen.

Survey Results

  • What Savings Definitions Does Your Organization Use?
    • 85% - Cost Reduction - Hard
    • 69% - Cost Avoidance - Soft
    • 54% - Business Process Improvement
    • 31% - Revenue Enhancement
  • For Your Organization, Who is in Charge of Creating the Savings Definitions?
    • 85% - VP & Chief Supply Management Officer
    • 54% - Supply Management Director
    • 31% - Supply Management Supervisor
    • 8% - Other
  • What KPI's Does Your Organization Use Within Supply Chain Management?
    • 92% - On Time Delivery
    • 85% - Cost Savings
    • 38% - Purchase Order Responsiveness
    • 23% - Other
    • 15% - Claim Recovery
    • 15% - Quote Responsiveness
  • How Does Using a P-Card Affect Your Organizations Cash Flow?
    • Improves cash flow by a bout 45 days from Net 45 to Net 90
    • We have to pay them off faster, but they are used as a matter of convenience
  • If a P-Card is Used, How Does Your Organization's ERP System Acknowledge Payment to a Specific PO Receipt?
    • Two data points are uniquely independent
    • ERP system cannot be used
    • Charge Number
  • What Systems Do You Use to Track KPI's?
    • Offline manual speadsheet (Excel)
    • Internal Systems (generated reports, databases and spreadsheets)
    • ERP System (SAP)
  • What is Your Organization's Reporting Period for the KPI's?
    • 69% - Monthly
    • 15% - Annually
    • 15% - Quarterly
  • How is the Goal of the KPI's structured in Your Organization?
    • 77% - Graduated on a scale (1 to 5; not acceptable to exceeds)
    • 23% - Pass/Fail
    • 8% - Other
  • What Does Your Organization Use P-Cards for?
    • 70% - MRO
    • 10% - Other
    • 10% - Raw Materials
    • 10% - Services
  • For An Organization Thinking About Using P-Cards, What Spending Controls Need to be in Place with the Credit Card Company?
    • Two Types of Limits - Dollar per transaction and month along with a limit on the type of product to be purchased (No chemicals, labor, travel or capital equipment)
    • Maximum purchase limit
    • Secured server, spending limits, approval process
  • How Has Your Management Historically Aligned the Goal of KPI's with Individual Performance?
    • KPI's have been flowed down to the individual as a goal for the evaluation period
    • Tie performance metrics to individual and team performance using Excel and SAP
    • Directly linked to salary incentive bonus