Supplier Performance KPIs – Supporting the Operative Buyer’s KPIs

Purpose Supplier performance KPIs are not an end in themselves.Their primary purpose, from an operational purchasing perspective, is to enable the operative buyer to achieve control, stability, and predictability in daily operations. In...

KPI Excess & Obsolete (E&O) Material Management

KPI Focus KPI excess and obsolete measures how effectively the operative buyer manages and minimizes the financial impact of excess and obsolete material. The KPI is not about eliminating E&O completely, but about:...

Operational KPI – Deviation Management (Quality & Invoice)

KPI Focus This KPI measures how well the operative buyer controls and resolves operational deviations that interrupt normal Procure-to-Pay and supply flows. The KPI focuses on: Why Deviation Management Is a Core Operational KPI...

KPI – Control of Open Purchase Orders (KPI Overdue POs)

KPI Focus This KPI measures whether the operative buyer has control over the open order book. Specifically, it identifies: This KPI answers the question: “Do we actively manage and clean our open Purchase...

KPI – Management of Open Purchase Orders (PO Changes)

KPI Focus This KPI measures how effectively the operative buyer manages changes to already issued and open Purchase Orders. The KPI focuses on execution discipline and responsiveness, not on why changes occur. Why Management...

KPI – Order Acknowledgement

KPI Focus This KPI measures how effectively the operative buyer ensures that suppliers formally confirm orders within an agreed time frame. The KPI is about closing the communication loop, not supplier reliability alone. Why...

Operational KPI – Purchase Order (PO)

KPI Focus This KPI evaluates how efficiently the operative buyer converts demand into a formal supplier commitment. At the most basic level, the KPI measures speed and process discipline, not commercial quality or savings....

KPI operative buyer role – Forecast

Operational KPI – Forecast (Level 1: Foundation) Purpose of the KPI The purpose of the Forecast KPI is not to measure forecast accuracy in a statistical or advanced planning sense.At this level, the objective...

Understanding the Operative Procurement Function (Van Weele’s Model in Practice)

Operative procurement is the engine of day-to-day purchasing in any organization. It deals with converting purchase requests into orders, getting goods and services delivered on time, and ensuring payments are handled correctly....

Understanding Operative Capital: A Guide for Operative and Tactical Buyers

As an operative or tactical buyer, your role isn’t just about finding the best suppliers or negotiating prices—it’s also about managing a critical financial aspect of procurement: operative capital. This blog post unpacks...

Procurement blog - LHTS

Category: Operative procurement