How Do We Measure Up?

Procurement practitioners however, are fully aware of the important role that they play in risk management, quality and bottom line contribution.

Information about How Do We Measure Up?

Stakeholder buy-in is definitely one of the biggest problems facing procurement in Australia (CIPS Australia, 2004). Accordingly, one of the key areas of interest for many procurement organisations is improving performance measurement. It is widely accepted that procurement performance measurement has historically been inadequate with the focus placed on traditional indicators such as cost rather than efficiency or effectiveness. This has led to an inability to demonstrate the value that procurement creates and captures for organisations. As a result, a lack of stakeholder buy-in and low levels of procurement credibility are generally apparent within the broader organisation.

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