What are Non-Financial Performance Metrics for Procurement?
Most of the non-financial measures are the place to seek for organizations that wish to demonstrate value beyond cost savings in all stages.
- The forward-looking facets of the company, such as innovation, diversity, and social responsibility, are typically the emphasis of these measures to control all the aspects.
- So, procurement has the potential to greatly influence various business sectors, but demonstrating how you are helping to achieve these objectives can be challenging to progress.
What are Non-financial Performance Metrics for Procurement?
Most organizations set savings as their main procurement objective, but after a team reaches a particular maturity level of the process, it’s critical to include critical metrics for monitoring non-financial objectives. Procurement must be in line with the company’s strategy and goal, and it most certainly has the potential to directly influence some strategic objectives of its growth. At that point, procurement teams must start optimizing beyond cost reductions and quantifying contributions as per requirement in ways other than monetary ones. Today’s teams have shifted their focus to include assessing non-financial performance as a component of their overall strategy to grow the business process.