How do you communicate and report your supplier sourcing metrics and KPIs to stakeholders and management?

1 Define your metrics and KPIs

Before you start collecting and analyzing data, you need to define what metrics and KPIs are relevant and meaningful for your supplier sourcing strategy. Metrics are quantitative measures that track and evaluate specific aspects of supplier performance, such as defect rate, lead time, or cost savings. KPIs are key performance indicators that reflect how well you are achieving your strategic objectives, such as supplier satisfaction, supplier diversity, or supplier innovation. You should align your metrics and KPIs with your business goals, stakeholder expectations, and industry benchmarks. You should also make sure that your metrics and KPIs are SMART: specific, measurable, achievable, relevant, and time-bound.

2 Choose your reporting tools and methods

Once you have defined your metrics and KPIs, you need to choose the best tools and methods to collect, analyze, and visualize your data. You can use various software applications, such as spreadsheets, databases, dashboards, or business intelligence platforms, to store and process your data. You can also use different methods to display and communicate your data, such as charts, graphs, tables, or infographics. You should select the tools and methods that suit your data type, audience, and purpose. You should also ensure that your tools and methods are reliable, accurate, and consistent.

3 Tailor your reports to your audience

When you prepare your reports, you need to consider who your audience is and what they need to know. You may have different types of stakeholders and management involved in your supplier sourcing process, such as procurement managers, finance directors, or senior executives. Each of them may have different levels of interest, knowledge, and influence on your supplier sourcing decisions. You should tailor your reports to your audience by highlighting the most relevant and important metrics and KPIs, using clear and concise language, and providing context and explanation for your data. You should also anticipate and address any questions or concerns that your audience may have.

4 Deliver your reports timely and regularly

To ensure that your reports are effective and useful, you need to deliver them timely and regularly. You should establish a reporting schedule and frequency that matches your data cycle, stakeholder needs, and business objectives. You should also adhere to your reporting deadlines and expectations. You should deliver your reports in a format and channel that is convenient and accessible for your audience, such as email, online portal, or presentation. You should also follow up on your reports and solicit feedback from your audience to improve your reporting process and outcomes.

5 Demonstrate your value and impact

Finally, you need to use your reports to demonstrate your value and impact as a supplier sourcing professional. You should not only report on what you have done, but also on why and how you have done it. You should show how your supplier sourcing metrics and KPIs align with and contribute to your business goals, stakeholder expectations, and industry standards. You should also showcase your achievements, challenges, and opportunities for improvement. You should use your reports to tell a compelling story that highlights your supplier sourcing strategy, performance, and results.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?