A Summary of Purchasing Measurement and Evaluation Characteristics

7. Measurement-reporting requirements and content vary

by position and level within the organization. Careful
planning helps guarantee effective use of the system at
each organizational level.
8. A single, overall productivity measure representing
purchasing and supply chain performance is not feasible.
9. Many industries need to shift from operational
measures focusing on activity to strategic measures
assessing a desired end result (for example, increased
participation by suppliers during new-product
development).
10. The strategies and plans used to produce a
performance measure’s result are probably more
important than the end performance result itself.
11. A balanced scorecard approach is an effective method
Human Resource Characteristics
1. A measurement and evaluation system is not a substitute
for effective management. The system is a tool that can be
used to assist in the efficient and effective operation of the
purchasing and supply chain function.
2. An effective system requires communication. Responsible
personnel must clearly understand the performance measure,
its performance expectation, and the role of the measure
during the performance evaluation process.
3. Measures must reinforce positive behavior and be positively
linked to an organization’s reward system and not serve as
punitive tools. If management uses the measures solely as a
means to identify nonperforming individuals, negative,
dysfunctional, or beat-the-system behavior may result.