How do you measure and report the performance of your procurement contracts?

For measuring and reporting the performance of procurement we should: First, define Key Performance Indicators (KPIs). Then, establish a process for regular data gathering, after each delivery or milestone should be done. We should consider identify variances and analyze their root causes. It is significant to determine whether they are within acceptable limits or require corrective action. With considering these issues we should create performance reports summarizing the key findings from the performance reviews to engage in collaborative problem-solving to address performance issues. After that, develop corrective action plans for any areas where performance is below expectations can be essential for our propose.

No método AWP Advanced Work Packaging, desenvolvido pelo CII, Construction Industry Institute, para Project Controls, alinhamos o Procurement à constru??o. Engenharia, Procurement e Constru??o s?o alinhados e Procurement deve, para cada um dos pacotes de trabalho antecipados no projeto, fazer todo o possível para gerar valor e entregar na sincroniza??o correta. Portanto, n?o apenas a boa contrata??o em termos de valor e negocia??o é levada em conta, mas também o alinhamento de tempo a par e passo com a constru??o, ajudando a organizar o projeto e a fazer um fluxo contínuo, de acordo com a metodologia Lean.

Measuring and reporting procurement contract performance involves tracking key performance indicators (KPIs) to ensure efficiency, cost-effectiveness, and quality. Here are some essential KPIs and methods I recommend: 1-Total Cost of Procurement: Includes purchase, administrative, and shipping costs. 2-Cost Savings: Measures cost reduction and avoidance. 3-Supplier Lead Time: Time from order to delivery. Purchase Order Cycle Time: Time from order to delivery. 3-Supplier Quality Rating: Based on rejection rates and quality scores. 4-Inventory Turnover Rate: Frequency of inventory replacement. 5-Service Level Agreements (SLA): Compliance with agreed service levels. Let me know what else you'll add to the list.

You can only report on what is measured. So ensure you establish an infrastructure that allows for key performance indicators to be monitored.

The first step is to establish clear, measurable KPIs that will help track the success of the contract. These may include quality, timeline adherence, cost control, regulatory compliance, and client satisfaction. These KPIs should be aligned with the strategic objectives of the project and agreed upon by all stakeholders from the outset.

Continuous monitoring of contract progress is crucial. I leverage project management tools such as Microsoft Planner, Jira, and Asana to track milestones and deliverables. Additionally, regular check-ins with stakeholders help ensure that any potential risks or issues are addressed proactively. These tools provide real-time insights, making it easier to adjust if any issues arise.

To monitor contract progress effectively: - Establish clear milestones and KPIs from the start. - Regularly review progress against the contract schedule and deliverables. - Maintain open communication with vendors and stakeholders to address issues early. - Schedule governance meetings with contractors to review progress, resolve issues, and align on next steps. - Use project management tools to track deadlines, costs, and quality. - Conduct periodic performance reviews and site visits, if applicable. - Ensure all changes are documented and approved. Proactive governance ensures contracts stay on track, minimizing risks and ensuring success.

Nesses projetos de datacenter e minera??o que atuei nos últimos dois anos, usamos o Oracle Primavera o Autodesk Construction Cloud e o Aconex, os dois últimos CDEs. Todos os reports gerados pelo Primavera, o s?o feitos a partir do recurso "thresholds monitor". Esses limites emitem "triggers" quando atingidos, e os relatórios s?o postados regularmente no CDE. O CDE por sua vez, envia um email para odas as partes envolvidas.

Service level agreements should be clearly defined setting out the requirements for meetings and measuring performance, escalation process on issues that arise and these should be referenced to the commercial agreement. The commercial agreement cannot exist in isolation of a clearly established SLA.

Here's a concise summary of the best practices for monitoring contract progress during a project: 1. Define Contract Performance: - Understand fulfillment of terms. - Assess quality of performance. - Identify areas impacted by poor performance. - Hold vendors accountable. 2. Create an Effective Monitoring Plan: - Develop a dynamic plan. - Foster collaboration across teams. - Share accountability. 3. Key Steps in Monitoring: - Track key dates. - Identify risks. - Regularly review performance.

It’s important to communicate the contract’s status regularly and clearly, based on the KPIs. This can include weekly or monthly status reports, highlighting progress, potential deviations, and corrective actions. I prefer using collaborative tools like Microsoft Teams and Zoom for real-time discussions and more detailed reports via email or shared documents for formal tracking.

?? A well-structured contract status report helps stakeholders stay informed and make informed decisions. When creating a contract status report, consider including the following key items: 1. Contract Summary 2. Performance Metrics 3. Milestones and Deliverables 4. Risks and Issues 5. Financial Summary 6. Stakeholder Engagement 7. Recommendations

Periodic internal and external audits are essential to ensure that the contract’s terms are being met and to uncover any discrepancies or risks. These audits involve reviewing documentation, processes, and deliverables, ensuring compliance and identifying areas for improvement or risk mitigation.

As auditorias, devem ser realizadas de duas formas, de maneira agendada, normalmente antes da emiss?o dos dados de medi??o, e aleatórias. A segunda op??o ocorre capturando "fotos" de métricas e marcos contratuais por amostragem, para aferi??o de desvios, sejam eles negativos ou positivos, e avalia??o de tendência.

Here's a concise summary of the benefits of conducting a contract audit: 1. Risk Mitigation: - Audits identify risks and prevent disputes or delays. - Early detection saves costs. 2. Performance Evaluation: - Assess execution against contract terms. - Evaluate vendor performance and adherence to timelines. 3. Financial Accuracy: - Verify invoicing and payments. - Detect errors or overbilling. 4. Process Improvement: - Identify inefficiencies and improve practices. 5. Stakeholder Confidence: - Builds trust and demonstrates compliance.

Changes in scope or requirements are inevitable. Therefore, a formal process for handling change requests is critical. This process includes obtaining approval for changes, documenting them thoroughly, and communicating the adjustments to all stakeholders. Tools like MIRO or Microsoft Teams can be useful for visualizing and managing these changes in a collaborative manner.

At the end of the contract, ensuring that all obligations are fulfilled is vital. This involves confirming that all deliverables have been met, payments are processed, and final documentation is complete. Closing the contract properly also includes conducting a post-mortem review to assess lessons learned and improve future contracts.

Effective project closure demonstrates professionalism, minimizes future problems, and allows for process adjustments before moving on to the next project. When closing a project, especially with regard to contracts, there are several essential steps to follow: 1. Formally Transfer Deliverables 2. Confirm Project Closure 3. Close Contracts and Review Documentation 4. Release Resources 5. Arrange a Post-Mortem 6. Archive Documentation 7. Celebrate 8. Update Credentials