Performance Measurement and Incentive Systems in Purchasing

1. Front Matter

   Pages i-xix

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2. The Purchasing Performance Measurement Challenge

   • Erik Hofmann, Daniel Maucher, Martin Kotula, Oliver Kreienbrink

   Pages 1-18

3. Purchasing Performance Measurement at the Level of Commodity Groups

   • Erik Hofmann, Daniel Maucher, Martin Kotula, Oliver Kreienbrink

   Pages 19-49

4. Excursus: Concepts for Increasing Purchasing Performance in Corporate Practice

   • Erik Hofmann, Daniel Maucher, Martin Kotula, Oliver Kreienbrink

   Pages 51-65

5. Purchasing Performance Measurement on the Procurement Organization Level

   • Erik Hofmann, Daniel Maucher, Martin Kotula, Oliver Kreienbrink

   Pages 67-91

6. Supplier Evaluation and Performance Measurement on the Buyer-Supplier-Relationship Level

   • Erik Hofmann, Daniel Maucher, Martin Kotula, Oliver Kreienbrink

   Pages 93-127

7. Holistic Systems for Purchasing Performance Measurement

   • Erik Hofmann, Daniel Maucher, Martin Kotula, Oliver Kreienbrink

   Pages 129-145

8. Performance-Oriented Incentive Systems and Bonus Payments for Buyers, Procurement Organizations and Suppliers

   • Erik Hofmann, Daniel Maucher, Martin Kotula, Oliver Kreienbrink

   Pages 147-169

9. Ten Steps to a “Sustained” Purchasing Performance Measurement

   • Erik Hofmann, Daniel Maucher, Martin Kotula, Oliver Kreienbrink

   Pages 171-174

10. Back Matter

    Pages 175-182

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In recent years, purchasing performance measurement have steadily gained in importance in theory and practice. Yet, in many cases, the focus still remains on cost items, especially savings. Moreover, reported performance ratios in purchasing are frequently called into question in terms of their amount and efficacy. Most of the time, there is no tie-in at all with staff compensations. To meet these and other challenges, this book presents a holistic approach for purchasing performance measurement and the incentive systems associated with it. The following topics are dealt with in detail: • Purchasing performance measurement on the level of commodity groups and the procurement organization • Supplier evaluation and performance measurement on the level of the buyer-supplier relationship • Comprehensive systems for purchasing performance measurement, such as the procurement value added and the purchasing balanced scorecard • Performance-oriented incentive systems and bonus payments for buyers, procurement organizations and suppliers Readers are thus provided with comprehensive guidelines for the implementation and realization of sustained performance measurement and incentivization in purchasing.

• Incentive systems
• Performance measurement
• Procurement
• Purchasing
• Savings

• Kerkhoff Competence Center of Supply Chain Management, Universität St. Gallen Chair of Logistics Management, St. Gallen, Switzerland

  Erik Hofmann

• Kerkhoff Competence Center of Supply Chain Management, University of St.Gallen Chair of Logistics Management, St. Gallen, Switzerland

  Daniel Maucher

• Kerkhoff Consulting GmbH, Düsseldorf, Germany

  Martin Kotula, Oliver Kreienbrink

The authors of this series are researchers of the University of St.Gallen, scientists of other leading international research centers with the focus on procurement and supply chain management, consultants of Kerkhoff Consulting and practitioners. As a result of the frequent formation of mixed teams, consisting of authors with theoretical and practical background, a close link between these disciplines occurs.

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