{"id":31920,"date":"2019-10-13T03:03:19","date_gmt":"2019-10-13T03:03:19","guid":{"rendered":"https:\/\/simfoni.com\/analytics\/?p=30333"},"modified":"2022-02-24T04:02:08","modified_gmt":"2022-02-24T09:02:08","slug":"how-does-procurement-dashboard-work-2","status":"publish","type":"post","link":"https:\/\/simfoni.com\/procurement-dashboard\/how-does-procurement-dashboard-work-2\/","title":{"rendered":"How does the Simfoni Procurement Dashboard work"},"content":{"rendered":"
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How do procurement<\/a> dashboard<\/span>s<\/strong> help companies in any industry track KPIs, perform spend analysis<\/span><\/a>, identify savings opportunities and implement cost reduction<\/span><\/a> strategies to improve their business?<\/em><\/p><\/blockquote>

Improve Compliance Rate<\/span><\/strong><\/h2>

The compliance rate<\/span> is how completely companies fulfill their contractual agreements with their customer. Besides quantities and prices, agreements include other clauses like cancelation terms, response times, diversity programs, process changes, and delivery windows. This is crucial for businesses that rely on procurement<\/a><\/strong> organizations to complete their order.  Procurement dashboard<\/span>s show individual and category supplier compliance<\/span> performance, which helps companies with benchmarking<\/span> and holds suppliers accountable now. This process provides valuable data to inform future supplier negotiations.<\/p>

Track Suppliers, Their Quantity, and Their Relationship with Your Company<\/strong><\/h2>

As a company, you’re sourcing<\/a><\/strong> from many suppliers at once who are competing for your investment. Some procurement leaders leverage their procurement processes and implement data-driven strategies to ensure on-time delivery, provide better products and cost-effective rates.<\/p>

Dashboard<\/span>s provide greater insight into supplier performance and help improve procurement performance overall. By seeing supplier performance in detail and in aggregate, organizations can select the best suppliers for their next orders and long-term contracts.<\/p>

Purchase Price Variance<\/strong><\/h2>

Material prices fluctuate for a variety of reasons, and many lie outside of your control. Procurement dashboard<\/span> features provide greater visibility into purchase price variances<\/a> like item and supplier commonality, spend under contract, and seasonality. Dashboard<\/span> insights narrow price variance ranges, and can be used to manage bulk purchases, hold inventory or annual contracted prices.<\/p>

A procurement department’s purchase price management abilities are vastly improved, increasing budget<\/span>ing and forecasting activities. Identifying supplier risk becomes more apparent and reigning in excess spending is more manageable.<\/p>

In manufacturing, direct material costs can consume as much as 70% of total manufacturing costs. Procurement Analytics<\/span><\/a> Dashboard<\/span>s are essential to reducing excessive manufacturing costs and implement long-term cost reduction<\/span>. When used correctly, PPV<\/a> can be a valuable performance indicator and its metrics<\/span> are vital to increasing your organization’s purchasing power and meeting cost savings<\/span> benchmarks.<\/p>

Supplier Diversity<\/span><\/strong><\/h2>

Sourcing<\/a> and maintaining a diverse supplier portfolio is essential for any industry’s procurement efforts. It’s a core strategic procurement function that procurement dashboard<\/span>s can help optimize and set achievable supplier benchmarks.<\/p>

Often diverse supplier targets come from broader, executive level corporate goals regarding diversity across the workplace. Suppliers who can report to your their supplier diversity<\/span><\/a> metrics<\/span> are working at levels of operational excellence with similar values. Their diversity reporting allows you to show both your Tier 1 and Tier 2 supplier diversity<\/span><\/a> metrics<\/span>.<\/p>

Dashboard<\/span>s are integral in assessing supplier portfolio risk and diversity. A dashboard<\/span> takes information from a variety of data sources to conduct procurement analysis that yields insightful metrics<\/span>.<\/p>

Useful metrics<\/span> include amounts for Diverse vs. Non-Diverse Suppliers in areas like these:<\/strong><\/p>