Vendor Identification & Management (Qualitative)
- The Vendor Identification and Management team selects and hires suppliers by examining the price and quality of their products and compare them to the specific criteria
- Relate: Vendor Relationship Manager, Vendor Management Analyst, Vendor Performance Manager
- Vendor Evaluation Criteria – Principal standards used by the firm to when picking raw material dealers
- Vendor Selection Responsibility – Administrative level within the firm with ultimate authority to pick raw material dealers
Vendor Identification & Management
- New Vendor Setup Cycle Time – The average amount of time required to authorize and add a dealer into the vendor management or procurement system utilized by the firm
- Percentage of Sole-Source Vendors – Percentage of dealers utilized by the producer that are single-source vendors
- Cost of Sole-Sourced Material- Expense paid for single-sourced raw materials
- Percentage of On-Time Deliveries – Percentage of dealers utilized by the producer that are single-source vendors
- Vendor Certification Requirements – A principal standards used by the firm on vendor accreditation
- Time Required to Certify Vendor – Average number of months needed for the firm for vendor accreditation
- Vendor Certification Responsibility – Executive level within the firm in charge of performing and handling vendor accreditation processes
- Actual vs. Quoted Lead Time – The difference between the delivery time cited by the vendor and the actual delivery time for one order or a set of orders
Vendor Compliance & Audit
The vendor compliance and audit team evaluates vendor performance and specifications to make sure that they comply with the conditions prescribed by the company and industry regulatory departments
Related: Compliance Specialist, Procurement Agent, Procurement Specialist, Procurement Compliance Specialist
- Vendor Performance Measures – Principal standards employed by the producers to assess the performance and service levels given by the dealers
- Frequency of Evaluation – Frequency with which raw material providers are officially assessed by the firm
- Vendor Delivery Performance: Average – Percentage of total deliveries received from a regular vendor that meet the requirements for on-schedule delivery and the exact quantity
- Vendor Delivery Performance: Best Vendor – Percentage of total deliveries received from a leading vendor that meet the requirements for on-schedule delivery and right quality
- Vendor Delivery Performance: Worst Vendor – Percentage of total shipments received from the worst vendor that meet the requirements for on-schedule delivery and right quality
- Average Received Materials Test Cycle Time (Days) – Average number of hours needed for the firm’s Quality Management office to complete inventory of incoming materials before releasing for internal usage
- Acceptance Rate of Inbound Materials – Average percentage of total materials received from dealers that are certified by Quality Control on initial entry
- Non-Acceptance Rate – Total frequency with which supplies or raw materials are declined by the firm’s manufacturer because of flaws in delivery or irregularities
- Percentage of Certified Vendors – Percentage of the overall number of dealers that are accredited by the procurement team; subdivided by local/international dealers
Strategic Sourcing (Qualitative)
The strategic sourcing team forms comprehensive company procurement protocols and guidelines. They also aim to enhance the efficiency of purchasing operations.
Related: Strategic Sourcing Analyst, Sourcing Analyst Specialist, Manager of Purchasing & Strategic Sourcing
- Budgeting Authority – Executive level within the firm at which budgeting for pre-manufacturing expenses is established
- Procurement System – Systems used by the manufacturer to record materials acquisition and production planning
- The extent of Electronic Links – Percentage of dealers that are electronically connected to the producer
- Use of Electronic Links – Duties the firm’s manufacturer routinely completes through electronic channels
The procurement logistics team collaborates with suppliers to enable prompt and productive delivery of purchased items.
Related: Supply Analyst, Procurement Manager/Director, Procurement Analyst, Procurement Specialist
- Inventory Turnover -An estimation of how fast inventory is sold and transferred from the storage house to customers or merchandisers
- Average Shelf Life – Shows the average amount of time that items are kept in the firm’s storage house before they are utilized in the manufacturing process
- Inventory Accuracy – An estimation of the validity of warehousing statistics relevant to in-stock inventory level. High inventory accuracy enhances customer services, removes wasted time
- Carrying Cost of Inventory – The expenses needed to store and deliver an inventory of a particular product during a specific term. Expenses include storage house labor, insurance, tax, storage, loss of value, and delivery costs
Procurement and Logistic Officer job responsibilities
- Source and buy products for use and for sale in the Company.
- Monthly stock taking.
- Managing of the company’s store and distributing of material according to usage.
- Keeping records of company stock and recording stock in and stock out. Reviewing the supply chain to ensure it is efficient and effective.
- Managing of personnel records e,g leave days, off days/sick offs, absenteeism and late coming in accordance with the Human resource manual and filing of the same.
- Organizing and scheduling of office meetings in a timely manner.
- Receiving complaints from personnel and arbitrating where possible.
- Get updates from suppliers on price changes and availability of items.
- Provides logistical support for project activities which includes picking and delivery of client goods and purchased stock in a timely manner.
- Ensuring sound partnership with suppliers.
- Ensuring timely, efficient and effective procurement of goods, services and works, while strictly adhering to the procurement policy.
- Establishing in liaison with the relevant departments and end users, quality specifications of goods and services.
- Carrying out designated checks on quality.
- Managing disposal of obsolete and disposable items with authorization from the management team.
- Preparing reports and updating the management on any issues needing attention.
Procurement KPIs or Key Performance Indicators are designed to measure the optimal functioning and success of the organization’s ability to manage and purchase raw materials, products, and other supplies needed for the business to function. Within this department, the critical performance areas that must be measured are the effective management of suppliers including vendor identification based on raw material cost, ability to deliver on time, and quality of raw materials, vendor compliance, and logistics management.
Continuous KPI tracking enables management to identify contradictory short-term trends to take proactive measures to rectify these tendencies before they evolve into production-stopping disasters.