How do you analyse a company’s purchasing and logistics processes?

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Quality and continuous improvement requireanalysing the performance of a company’spurchasing and logistics process. This ensures that operations are focused on customers, profitability and your company’s competitiveness. They give you a better idea of the efficiency and productivity of the operational performance of the departments concerned.

Find out how to carry out an effective data analysis of this purchasing and logistics process to optimise the skills management of your human resources.

Collecting variable data

Clearly identify each purchasing and logistics process. Their viability parameters must be exhaustive to ensure continuous improvement and correct monitoring of activities. Their data has certain indicators that are relevant to the purchasing and logistics processes. Next, describe the purpose of each of the performance indicators and the variables involved in calculating them. Define the purpose and usefulness of each. Variables include financial volatility, demand volatility, insecurity, infrastructure volatility and workforce volatility.

In addition, gather data for all the processes and their sources. This makes it possible to test different scenarios, forecast different events and specify preventive measures. Measuring the variables in each indicator is equally important. A simple way of measuring the relevance of a purchasing or logistics process is the complexity and volume of operations. For warehousing, it is dictated by stock management policies, the number of orders and storage units. For transport, it is determined by the points of origin and destination and the number of shipments made. Behavioural analysis is also an interesting and relevant source of data.

Comparing indicators

Define the infrastructure and systems that add value. These are the equipment and technology that facilitate the execution, automation and control of processes. They provide real-time information and enable rapid decision-making. Compare each indicator with the overall indicators of the company and its competitors. Allocate resources to evaluate processes and determine their degree of maturity.

Continue to measure the indicators so that you can make any necessary adjustments. To guarantee the improvement and quality of purchasing processes, constantly monitor key performance indicators. Gather and show the measurement systems in a customised table for each area, which must be constantly updated to providereliable information. Based on the statistics, make the right decisions. The aim is to gain a competitive advantage from these measurements. They can be used by information management systems, which translates into.

  • Greater ability to analyse performance
  • Identification of patterns and trends to speed up the decision-making process
  • Achievement of tactical and strategic purchasing and logistics management objectives

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Purchasing and logistics: company performance

The traditional model encourages each sector to follow its own processes individually. However, this varies according to the linear sequence. It often makes logistics organisation inefficient. It can lead to longer lead times and a disjointed decision-making process. In a different way, the information generated by each sector is subject to margins of error. This can affect planning, purchasing, warehousing, manufacturing and distribution. They can slow down the supply chain and cost it dearly.

Metrics are used to link the data from each sector. They process them via interconnected information systems, offering sufficient flexibility to make decisions quickly. This helps to meet the demands of today’s constantly changing environment. However, opt formanagement outsourcing. Or even digitising purchasing. You can follow a new operations model that takes advantage of the collaboration of logistics suppliers. It helps you integrate various systems that manage the right data autonomously. This eliminates margins of error and increases the productivity and performance of your organisation.

Purchasing and logistics: elements to be highlighted

Thelack of measurement of purchasing and logistics activities is one of the obstacles facing senior managers. It prevents them from identifying the main problems in their departments. This can undermine the company’s competitiveness in the marketplace. In order to engage confidently, you need to consider the premises and digitisation when assessing performance.

Data is the basis for understanding the operational performance of services. To bring about change, identify the sources of the information to be assessed and how it circulates. This strategic analysis requires data to be collected in real time from several points of contact. This enables a fingerprint to be created so that the results can be seen. In this way, senior management can test different scenarios. It can adjust the digital supply chain model to plan and forecast different events. It can also help to prescribe preventive measures for challenges that may arise, and thus operate sound risk management.

Reliable predictive analysis provides effective tools for measuring purchasing and logistics performance accurately and on time. Itimproves the agility of business operations andincreases their ability to recover. Weproc can help you define a purchasing strategy with an analysis of performance and the benefits you could gain from a digital solution.

 

Want to learn more about our procurement management software Weproc? Contact us or request your free 15-minutes demo below!


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