Key Performance Indicators, Savings and P-Cards
Results based on a sample size of thirteen.

 Survey Results

  1. What Savings Definitions Does Your Organization Use?
    85% - Cost Reduction - Hard 69% - Cost Avoidance - Soft 54% - Business Process Improvement 31% - Revenue Enhancement
  2. 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
  3. 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
  4. 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
  5. 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
  6. What Systems Do You Use to Track KPI's?
    - Offline manual speadsheet (Excel) - Internal Systems (generated reports, databases and spreadsheets) - ERP System (SAP)
  1. What is Your Organization's Reporting Period for the KPI's?
    69% - Monthly 15% - Annually 15% - Quarterly
  2. 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
  3. What Does Your Organization Use P-Cards for?
    70% - MRO 10% - Other 10% - Raw Materials 10% - Services
  4. 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
  5. 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