An important aspect of management is the ability to know where an organisation is at a given time. Within this Guide, information has been given to help you and your organisation to improve its procurement activities and making better use of its limited resources. Improvements may be achieved by getting the same or better goods and services for less cost or making better use of the institution’s resources through its staff working smarter.
The Centre for Procurement Performance is currently working to identify a number of key performance indicators (KPI s) that will be used to help institutions’ determine how they are performing. For example, it is expected that the sector will be required to report efficiencies achieved through better procurement practices. The Efficiency Measurement Model has been developed specifically for this purpose and will provide a standard format and methodology within which to record and collect this information. Standard reporting formats will be developed to minimise the practical aspects of preparing and submitting consolidated reports to the Funding Councils.
IBIS, provides a methodology that can be used to measure the level of professional procurement influence and the types of procurement arrangements used within an institution. This analysis, completed annually, provides KPIs that give a ‘picture’ of how your institution is performing year-on-year. This is very powerful information when used as an internal benchmark however, when the institution is ready, it may be used to benchmark with other institutions, perhaps of equivalent size, age, or academic profile.
Within your institution, it recommended that some transactional analysis is completed to identify areas were, perhaps, more automated processes may be appropriate or to measure improvements that have happened after introducing some new working practice - such as the procurement card.