Are You Tracking the Right Procurement KPIs? Here's What You Shouldn't Miss

In procurement, it’s easy to get lost in the day-to-day hustle chasing approvals, managing suppliers, cutting costs. But how do you actually know if your procurement efforts are working? The answer lies in three letters: KPIs.

Procurement KPIs aren’t just buzzwords. They’re the metrics that help you see what’s working, what’s not, and where you should be focusing your energy.

They turn guesswork into clear insight and in 2025, with tighter budgets and higher expectations, that’s more important than ever.

So let’s talk about the seven procurement KPIs that really matter, the ones you need to keep your eyes on if you want to stay ahead this year.

First, Why Do Procurement KPIs Matter?

Think of procurement KPIs as your performance scorecard. Without them, you’re flying blind. With them, you can:

✔️ Spot where money is being saved or wasted.

✔️ Measure how reliable your suppliers truly are.

✔️ Identify process delays before they become bottlenecks; and

✔️ Prove procurement’s value to the rest of the business.

Whether you're leading a small team or managing procurement for a large organization, KPIs give you clarity and direction.

How Do You Measure Procurement Performance?

It’s not just about crunching numbers, it’s about using the right tools and asking the right questions. Here’s how to get started:

✔️ Use a dashboard: Track your KPIs in one place with tools that offer real-time data.

✔️ Compare with others: Benchmark your performance against industry standards.

✔️ Talk to your team and suppliers: Regular reviews help spot hidden issues and opportunities.

✔️ Leverage tech: AI and automation can save time and offer deeper insights.

7 Procurement KPIs You Really Need to Watch in 2025

✔️ Cost Savings & Cost Avoidance: This one’s a classic and still king. Whether you’re negotiating better prices or avoiding unnecessary expenses, tracking how much you’re actually saving is crucial.

✔️ Supplier Performance & Compliance: Are your suppliers showing up on time? Delivering quality? Following your standards? This KPI helps you answer that and protect your business from surprises.

✔️ Procurement Cycle Time: How long does it take to go from "we need this" to "it's ordered"? The faster and smoother your cycle, the better your internal service and efficiency.

✔️ PO Accuracy: Mistakes in purchase orders slow everything down. Track how often your POs are right the first time, it’ll save you time, money and headaches.

✔️ Maverick Spend: When people buy outside the system, it creates chaos. This KPI shows how much spending is happening off-contract and where you need to rein things in.

✔️ Supplier Risk Management: From financial instability to global disruptions, supplier risks are everywhere. This KPI helps you stay alert and builds resilience into your supply chain.

✔️ Procurement ROI: Procurement isn’t just about cutting costs, it’s about adding value. Are your strategies paying off? Are your suppliers helping drive innovation or sustainability? That’s what this KPI tells you.

So, are your procurement KPIs working for you or against you? If you’re not measuring the right things, you could be missing key opportunities or letting risks slide under the radar.

The good news? It’s never too late to set things in order. Take a moment. Review your procurement KPIs. Are they helping you move toward your strategic goals? If not, it’s time to adjust because in 2025, what you track is what you’ll improve.

Need procurement specific training? Reach out to support@efemini.com and we'll get you sorted.