Key Performance Indicators, Savings and P-Cards

Results based on a sample size of thirteen.

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