Buyer Analytics

The IndustryWeek Best Plants Benchmarking Database (registration required) can show you how top manufacturers set themselves apart. Which tactics do they implement? How do they measure their performance?

The best plant metrics are provided for management practices, quality, employment practices, safety, customer focus, product innovation, supplier relations, technology investment, manufacturing operations & flexibility, maintenance, inventory management, environmental stewardship and competitiveness & market results. Comprehensive to say the least.

Here are a number of world class procurement metrics from the best plants benchmarking database:

• What percent of key suppliers have been formally certified?
• Are suppliers contractually committed to annual cost reductions?
• What percentage of purchased materials and components (dollar volume) is managed by on-site suppliers?
• What percent of purchased materials and components (dollar volume) is delivered to point-of-use?
• Do major suppliers contribute to cost-reduction and/or quality-improvement efforts?
• When supplier initiatives yield cost savings for the plant, are cost savings shared with the supplier?
• What percent of procurement is placed with suppliers via the Internet?
• What percentage of supplier orders are delivered on-time (by the request date)?
• Percent of purchased material (dollar volume) that no longer requires incoming inspection.
• Percent reduction of average lead time on class-A purchased materials in last 3 years.
• Percent reduction in number of suppliers.
• What are total logistics costs as a percent of sales?
• Total premium freight chargers as a percentage of total freight for the most recent calendar year.

The report is loaded with many other manufacturing benchmarks, be sure to check this out.