PMI - A Better Way to Measure Procurement Performance
Tuesday, March 14, 2006 at 10:01PM An article titled Building Blocks to Better Procurement provides good insight for measuring procurement's performance. There is a slant towards application in government procurement, but there is a nice comparison of what is commonly measured and what should be measured.
The author further explains the Procurement Management Index (PMI). I especially liked the notion of the challenge function:
Challenge Function: This measure is used to challenge the necessity of any goods procurement or large scale projects. The objective is to provide checks and balances in purchasing to ensure that the client organization receives value for the funds expended prior to contracting. Formal diagnostics can be conducted for standard and custom procurements or informal diagnostics for less complex and costly goods and services. The results of the diagnostics determine whether the procurement would be approved, amended or disapproved.
Other parts of PMI include service and delivery measures, compliance, issue management, client education and overall effectiveness. Here is the link:
http://www.findarticles.com/p/articles/mi_qa3993/is_200601/ai_n16078982