How to do the procurement department performance appraisal?

Enterprises in order to improve staff motivation, to achieve the business objectives of the enterprise, will be for each department to develop performance appraisal standards, rewards advanced punishment backward. Considering the objectivity and enforceability of performance appraisal, enterprises are more inclined to the implementation of quantitative assessment standards for employees, some departments of the assessment is relatively easy to quantify, such as the sales department, some departments of the assessment is not easy to quantify, such as purchasing departments, human resources, finance, etc., here we first explore the quantitative assessment of the purchasing department.

Generally speaking, the enterprise hopes that the procurement department can be in the shortest possible time to purchase the best products at a low price, broken down to include three aspects: the same price quality is the best, the same quality of the price of the lowest, the same quality and price of the shortest time the highest efficiency, it can be seen that the procurement department's performance in fact with the nature of the comparison, so the procurement department's performance can only be compared to carry out the Appraisal. The reason why it is difficult to implement quantitative assessment of the purchasing department, because there is no assessment of the benchmark, the lowest price is how much, what is the best quality, the shortest time is how long, can not be determined, the quantitative assessment of the sales department is easy because of the readily available assessment of the benchmark, such as monthly sales, annual sales, etc..

Benchmarking can be divided into dynamic benchmarking and static benchmarking, can also be divided into industry benchmarking and internal benchmarking, for the enterprise's purchasing behavior, to get the static benchmarking and industry benchmarking of the precise value is extremely difficult, and more often than not this precise value does not exist. If the use of dynamic benchmarking + internal benchmarking to develop the procurement department's performance appraisal standards will be relatively easy, but also more scientific.

Enterprises can formulate the procurement department's performance appraisal standards according to the following three principles: the same price, quality priority; the same quality, price priority; the same price and quality, time priority, the introduction of competition within the purchasing staff, similar to a bidding process, for the same purchasing task, put forward a clear purchasing requirements, the purchasing staff to utilize their accumulated supplier resources to determine the optimal purchasing program, the department of procurement, the department of procurement, the purchasing staff to determine the optimal purchasing program. In order to determine the optimal procurement program, the department head will finalize a procurement program in accordance with the above criteria, and the procurement staff who provides the procurement program will be rewarded.

This assessment method has the following benefits: first, to realize the quantitative assessment of the purchasing department; second, to improve the enthusiasm of the purchasing staff; third, to achieve the purpose of the company's procurement of good quality and low-cost products; fourth, to help evaluate the purchasing staff's ability to work.