By Erik Hofmann
In fresh years, procuring functionality size have progressively won in value in idea and perform. but, in lots of circumstances, the point of interest nonetheless is still on rate goods, in particular discount rates. additionally, pronounced functionality ratios in procuring are often known as into query when it comes to their volume and efficacy. more often than not, there is not any tie-in in any respect with employees compensations. to fulfill those and different demanding situations, this booklet offers a holistic method for getting functionality dimension and the inducement platforms linked to it. the subsequent issues are handled intimately: • buying functionality size at the point of commodity teams and the procurement association • provider assessment and function dimension at the point of the buyer-supplier courting • accomplished platforms for buying functionality dimension, reminiscent of the procurement worth extra and the deciding to buy balanced scorecard • Performance-oriented incentive structures and bonus funds for dealers, procurement organisations and providers Readers are hence supplied with finished instructions for the implementation and attention of sustained functionality dimension and incentivization in purchasing.
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Additional info for Performance Measurement and Incentive Systems in Purchasing: More Than Just Savings
Sample text
Essential is, in this respect, the definition or the determination of the respective commodity percentage which is not always easy to be presented. For the procurement of steel tubes—with a commodity percentage of 50 % and a 20 % 15 16 Cf. Jahns et al. ; cf. Hug (2011). Cf. Jahns et al. (2007), p. 74 et seq. 2 Methods for Performance Measurement on the Commodity Group Level 29 increase in market price during the comparison period—the supplier’s demanded new price should not be more than 10 % above the original price.
Carter et al. 27; cf. 22 et seq. Cf. ; cf. ; cf. 22 et seq. 6 Cf. 22 et seq. 2 Methods for Performance Measurement on the Commodity Group Level 23 or they will only show up indirectly in the form of savings in future business periods. The following presents widespread cost-based and qualitative methods. Moreover discussed will be any relevant influences and adjustments in performance measurement on the commodity group level. 1 Cost-Based Methods for Measuring Savings of Commodity Groups Most companies use cost-based performance measurement as the central method to present the success of purchasing performance.
2), the level of the procurement organization (Chap. 4), and the close-knit levels of suppliers (Chap. 2) as well as the supplier/buyer relationship (Chap. 3). Any realization and implementation of purchasing performance measurement must first formulate the objectives and an understanding of performance. On that basis, quantitative and qualitative methods can be used for the purchasing performance measurement. 2). , by procurement value added (PVA) (Chap. 3). 7). 5. In the following, the reference frame is always presented in the Management Recommendations and will be provided with examples to illustrate the statements in the preceding chapters.