In yesterday’s NLPA members-only webinar, I introduced the groundbreaking model of “The Procurement Funnel TM.” Here’s a little background on how I came up with the model.
The sales profession has a very well-defined set of key performance indicators (KPI’s) that are used across many, many sophisticated organizations. They also have a widely-used model called “the sales funnel.”
The principle of the sales funnel is that you start out with your potential for sales for a year. There are many steps in the sales cycle that reduce the amount of potential sales until the sales organization is left with its actual sales. The concept is like a funnel – big at the top (potential) and small at the bottom (actual).
High-performing sales organizations use a handful of KPI’s that help their leaders increase the amount of actual sales can come out of the funnel. When sales leaders focus on improving performance as measured by these KPI’s, they get better overall, bottom-line results. It’s sounds simple, but it works extremely well!
Sadly, the procurement profession had no similar model…until now!
Let me show you what “The Procurement Funnel TM” looks like…
The Procurement Funnel TM graphically represents how various factors influence the actual cost savings your organization can realize on its “bottom line.” It is designed to help procurement leaders focus on the critical factors and metrics that can help a procurement team reach its cost savings potential.
If you’re interested in a full explanation of the Procurement Funnel TM and how to implement it for better procurement results, consider enrolling in our four-part online Express Course series, “Procurement KPI’s & Business Acumen.” That series thoroughly covers the Procurement Funnel TM and how to use all of the relevant key performance indicators to create a compound effect that can truly maximize cost savings like no single metric can do on its own.
To learn more about “Procurement KPI’s & Business Acumen,” please visit http://nextlevelpurchasing.com/key-performance-indicators-for-procurement.php.