Your information is an asset. This information help you to get the insides of the operation. It guides the management how they are doing? What need to be focused on? In this article I will give you a brief idea about Dashboard (Business intelligence) associated with Procurement department. This department has a very vital role on companies’ Supply chain management System as well as Profitability. In most case biggest amount expended within this department. If you can save 5% of total expenditure, does a big matter on profitability. Procurement Dashboard can help you to visualize all actions, associated with procurement department. In this article I will tell you top Top 8 KPIs :Procurement department BI dashboard.
1. Price Analysis:
Before state procurement process, company ask quotation from vendor. Generally this pricing is not static. It differ time to time and vendor to vendor. Procurement BI dashboard can help to visualize the pattern of pricing. It helps management can taking decision from when and where they can source their supplies.
2. Vendor Analysis:
After receiving supplies from vendor quality department measure the quality of product. Sometime they get supplies below benchmark. Often it become a huge problem for a company. On the other hand, time is very important for business. If the suppliers do late during supply, company face difficulties and it create negative impact on Production department too. BI dashboard can analysis those data and rank the suppliers accordingly. It also give high-level idea about the newly added vendors. To get competitive advantage, BI dashboard provide all information, which is not an easy task to get manually.
3. Product Analysis:
Products qualitative and quantitative data are recorded in database. This data help you to produce BI dashboard. It indicates, which category of product need to handle more carefully? Which has short expire life? which category often damaged etc.?
4. Delivery Partner Analysis:
Sometime delivery partner delay the shipment. Often goods damaged due to bad handling by the delivery staff. Both are expensive for a company. BI dashboard can visualize these impacts, so management can take efficient business decision.
5. Order status:
Concern department can easily understand the order and Payment status. If the supply come from outside of the country, can see the current location and arrival day at your dashboard.
6. Human resource Analysis:
BI dashboard helps the company to measure the performance of human resource, who are directly involve with the procurement department. For example, Customs office added additional charge as the products was not cleared in due time. BI Dashboard will clearly indicate who supposed to do this task? why that happened? It will help to establish better process.
7. Saving measurement:
Reduce expenditure It is one of the main goal. Dashboard can visualize which area need to be to focused on in order to cost control and what is the savings.
Different threshold can be set for each activity. Example: if there is any delay on shipment, automated alert system can be triggered through SMS, Email or visual indicator. A dashboard gives clear visibility of each and every process. To monitor and control the procurement process, this visibility is the key that will mitigate the risk.