Once you have your supplier contract secured, it is important to always remember to think ahead. Your savings may be beneficial today. What about five years from now? Have you asked the right questions to your supplier? Have all possible loopholes been uncovered? There could be money and opportunity that is being left on the table. Every organization needs a strong set of KPIs in place to determine the long-term impacts of a supplier contract.

Implementing substantial KPIs help keep your organization on track to continued savings. Plus, you will be able to clearly see what area(s) needs the most improvement.

Here are three KPIs to keep in mind to ensure your organization has the most effective cost saving methods in place:

Meaningful

What criteria are necessary for your specific organization?

Measurable

How can data be monitored to ensure results are being achieved and maintained over time?

Manageable

What methods will be accepted and followed by all key players to ensure the implementation of cost-saving processes throughout your organization?

 

Download our full Becoming Best in Class Whitepaper today to uncover all the secrets your organization should know for a successful supplier relationship.