How To Create Procurement Reports, Part II
PurchTips edition #303
What Should Be On Your Procurement Reports?
In the last edition of PurchTips (http://tinyurl.com/k4upsad), I discussed how weekly or monthly procurement reports can help procurement leaders stay on top of their departments' progress. I also shared four items to consider including on your procurement report. In this edition of PurchTips, I'll share items 5-8 to consider including.
- Supplier Performance Reviews. Every procurement department should be meeting at least annually with its most critical suppliers to review the performance of each. This section of the report should summarize scheduled and completed reviews and share the details on what certain suppliers are doing to improve their performance.
- Strategic Supplier Collaborations. Beyond just improving their performance on "the way things are done today," suppliers can provide external ideas for giving your organization a competitive advantage. In this section, you should document these types of ideas that you and your suppliers are implementing and considering for the future.
- Process Improvements. Processes don't get better on their own. In fact, if left unmanaged, some processes may tend to get worse or even out of control. In this section, you should share what processes you are evaluating for improvement or actually improving and the gains expected from those improvements.
- Value Creation Efforts. Today's procurement departments are expected to do more than simply achieve cost savings. They are expected to bring value to the organization in a variety of other ways, such as growing revenue, improving quality, and helping the organization strengthen its brand. A section dedicated to value creation efforts will demonstrate to management that the procurement department is operating in the most modern way.
This concludes the two-part series on procurement reports. A procurement report template is available to Premium Members of the NLPA in the NLPA Library.
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