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A Catalogue of Strategic Purchase Process  Metrics

 

SM-01 — Spend Under Management (SUM)

SM-01 — Spend Under Management (SUM)

The share of total external organisational spend that is actively managed, tracked and influenced by the procurement function.

Current SUM
—
—
— • — • —

Managed vs Unmanaged (composition)

SUM —
Managed
—
Unmanaged
—
Benchmark target
≥ 80%
Formula: SUM (%) = Managed Spend / Total External Spend Ă— 100
Direction: Higher is better.
SUM by Category
Target line•80%
Measurement frequency: Monthly / Quarterly Metric ID: SM-01
SM-02 — Supplier Base Management

SM-02 — Supplier Base Management

Track supplier consolidation via Active Supplier Count and spend concentration in Top-N preferred suppliers.

Active Supplier Count
—
—
— • COUNT(suppliers with ≥1 PO in period)

Interpretation

Lower vs prior periods → consolidation progress • Too low may indicate dependency risk
Top-N Concentration
—
—
Spend with preferred suppliers / Total managed spend Ă— 100

Spend concentrated in Top-N preferred suppliers

Target 70%
—•—
Formula: Top-N = Spend with Preferred / Total Managed Spend Ă— 100
Top suppliers by spend (preferred)
Explains what drives concentration • Shows top 5 rows for lean view
Supplier
Spend
Last 6 mo
Share
Metric ID: SM-02 Direction: consolidation ↑ (count ↓, concentration ↑)
SM-03 — Procurement Savings Rate
SM-03 • Value Creation

Procurement Savings Rate

Validated procurement savings as % of prior-year addressable spend.

Period
Savings Rate
—
—
— • — • —
Target
≥ 5.0%
Benchmark range: 3–8%
0%10%
Target 5%
Formula: Savings Rate = Validated Savings / Prior-Year Addressable Spend Ă— 100
Savings Mix
Hard • Soft • Avoidance (contribution to rate)
Total: —
Hard savings
—
Soft savings
—
Cost avoidance
—
Top initiatives (validated)
Measurement: Quarterly / Annual • Benchmark: ≥ 5% (range 3–8%)
SM-04 — Supplier Risk Index (SRI)
SM-04 • Risk Management

Supplier Risk Index (SRI)

Composite weighted portfolio score across financial, operational, geographic, dependency and ESG risk. Scale 1–5 (lower is better).

View Period
Portfolio SRI
—
—
— • Weighted by spend/criticality • Threshold: < 2.5
1 (Low)5 (Critical)
Threshold 2.5
Formula: SRI = ÎŁ (Supplier Risk Score Ă— Spend/Criticality Weight)
Risk drivers (weighted)
Average score per segment • size indicates weighted exposure
—
Top risk hotspots (sample)
Frequency: Quarterly • Direction: Lower is better • Org threshold: < 2.5
SM-05 — Contract Coverage Rate
SM-05 • Compliance & Governance

Contract Coverage Rate

% of managed spend executed under a valid, signed and current contract (framework / MSA / individual contract).

Dimension Period
Current coverage
—
—
— • — • —
Target
≥ 85%
Higher is better
0%100%
Target 85%
— • Coverage = Contracted Spend / Managed Spend × 100
Coverage by Category
Each bar shows coverage % with target marker
—
Uncovered spend risks: price creep • unenforceable SLAs • audit exposure
Metric ID: SM-05 Frequency: Monthly / Quarterly
SM-06 — ESG Compliance Rate
SM-06 • Sustainability & Responsibility

ESG Compliance Rate

% of assessed/key suppliers that completed ESG assessment and meet minimum standards (self-assessment, audit, certification checks).

Dimension Period
Current compliance
—
—
— • — • —
Target
≥ 75%
Strategic / key suppliers
0%100%
Target 75%
— • ESG Compliance = Suppliers meeting threshold / Assessed suppliers × 100
Tip: Use a phased roadmap (e.g., focus Tier 1 / strategic suppliers first).
Compliance by ESG Pillar
Each bar shows compliance % with target marker
—
Evidence sources may include self-assessments, third-party audits, or certification checks (e.g., ISO 14001, SA8000).
Metric ID: SM-06 Frequency: Semi-annual / Annual

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