New purchasing measures for stellar performance.

Abstract

According to this article, many manufacturing companies evaluate their purchasing departments using inappropriate measures. One reason is that the measures chosen are easy to use. Another is that the companies tend to favor predictability, and they thus prefer numbers that they can try to achieve. But predictability is not always a virtue. In fact, an obsession with predictability can prevent the kind of flexibility that is often necessary to respond to changes in the market. The article suggests that the best measures to use in evaluating purchasing departments are behavior measures, not price, delivery, or quality measures.