PurchTips - Edition # 190

 

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Picture of Charles Dominick, SPSM, SPSM2, SPSM3

Purchasing Managers' Worst KPI Mistakes

By Charles Dominick, SPSM, SPSM2, SPSM3

Are Your Purchasing KPI's Truly Strategic?

Purchasing managers often consider measuring purchasing performance to be a way of demonstrating the strategic value of the purchasing function to top management. Unfortunately, there are a couple of mistakes in measuring and reporting purchasing performance that produce the exact opposite effect.

In discussions with other purchasing professionals, I often learn of key performance indicators (or KPI's) they use. Some are good. Some are absolutely horrible!

One common mistake is considering every measurement a key performance indicator. Let me state this in no uncertain terms: Not every purchasing performance indicator is a purchasing KPI!

Another mistake is thinking that just because you can measure something means that you SHOULD measure it. Doing so dilutes your focus on what's truly important, wastes time, and can make you look bad!

Discussing KPI's reveals whether a purchasing manager is truly a strategic thinker or not. When your CEO sees your purchasing KPI's, s/he wants to know:

  • How do those KPI's directly reflect contribution to the profitability of this organization?
  • How do those KPI's directly reflect contribution to the satisfaction of our customers?
  • How do those KPI's directly reflect contribution to the advantage we would have over our competitors?
  • How do those KPI's directly reflect contribution to the operational efficiency of this organization?
  • How do those KPI's directly reflect contribution to my goals?

If the answers to those questions are clear to your CEO, you're truly using strategic purchasing KPI's. Don't forget that the "K" in KPI stands for "key," meaning "important" - not important just to you, important to your CEO. So, report true KPI's, not mere PI's!

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Spotlight On Professional Development Opportunities

SPSM Certification

Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.

You see, today's employers refuse to reward employees for yesterday's skills.They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.

Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!

So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) (with the option of getting a Study Guide on an iPad) at:

Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) at:

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices  into your organization and achieve your career potential. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:

  • FREE $30 gift certificate to Amazon.com!
  • FREE CD-ROM with printer-friendly versions of the class materials!
  • FREE Purchasing Performance Measurement spreadsheet template!
  • FREE audio CD about purchasing job security!

To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:

Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:

Learn how to earn your SPSM® Certification at:

www.NextLevelPurchasing.com/spsm.html



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Free Procurement Training & Certification Starter Kit

This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.

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Included in your free Starter Kit:

  • Access to two lessons from courses that are part of the Senior Professional in Supply Management® Program
  • A Certification & Training Planning Template
  • Case studies
  • A free Basic Membership in the NLPA

Together, these materials will help you decide how well the SPSM® Certification can help you achieve your career goals.

So, what are you waiting for? Begin your pursuit of a more rewarding procurement career – get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!

If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.