Because you can measure the maturity of your Procurement team... By how many KPIs you track beyond the traditional ones. This infographic shows 12 value reporting metrics (most teams report just the first 4 max) ✅ #1 - OPEX SAVINGS ❓ What: measures cost reduction achieved in the operational expenses of a business 🔢 Calculation: (Original Price - Negotiated Price) x Quantity purchased ✅ #2 - CAPEX SAVINGS ❓ What: measures the cost reductions achieved in capital expenditure 🔢 Calculation: Original price - negotiated price. ✅ #3 - COST AVOIDANCE ❓ What: measures prevention of potential future cost increases 🔢 Calculation: Expected future costs - actual future costs ✅ #4 - CASHFLOW ❓ What: measures the timing and movement of cash to improve business liquidity 🔢 Calculation: Improved cash flow from payables = delayed payables period x average purchase per day. ✅ #5 - REVENUE ❓ What: sourcing activities that contribute to increasing the business income or top-line growth 🔢 Calculation: e.g. Cost of good sold reduction (COGS). Procurement's ability to lower COGS directly impacts profitability and revenue generation. ✅ #6 - PROCESS IMPROVEMENT ❓ What: enhancement of workflows and tools to increase efficiency & improve outcomes 🔢 Calculation: time saved (hours) x hourly rate of employee ✅ #7 - RISK MITIGATION ❓ What: identifying, assessing and addressing potential risks within the supply chain 🔢 Calculation: (Risk Mitigated through Procurement / Total Identified Risk) x 100 ✅ #8 - INNOVATION ❓ What: leveraging creative strategies and advances technologies to contribute to business goals 🔢 Calculation: (Value of innovative solutions sourced by Procurement / Total Innovation-Related Spend or Revenue) x 100 ✅ #9 - STRATEGIC SOURCING ❓ What: identifying, evaluating and engaging suppliers to achieve long-term value in line with business goals 🔢 Calculation: (Value of strategic sourcing initiatives / Total Procurement Spend) x 100 ✅ #10 - EFFICIENCY ❓ What: optimising processes, resources and workflows to achieve the desired outcomes with minimal waste 🔢 Calculation: (total value delivered by Procurement / total procurement costs) x 100 ✅ #11 - SUSTAINABILITY ❓ What: sourcing goods & services in a way that minimises negative ESG impacts 🔢 Calculation: Measured by number of activities driving ESG improvements. Also environmental reporting, e.g. carbon footprint reduction ✅ #12 - DEMAND MANAGEMENT ❓ What: forecasting, planning and controlling the demand for goods and services 🔢 Calculation: Service level (availability) improvements.