Purchasing Performance Management Systems and Strategy: classification of KPIs and empirical analysis

This paper investigates the topic of purchasing performance management and its relationship with purchasing strategy. A hierarchical classification framework for purchasing Key Performance Indicators is proposed, linking overall purchasing performances perceived by the internal customer to their determinants, i.e. internal purchasing processes and suppliers' performances. Subsequently, 8 case studies in large multinational organizations are analyzed, in order to investigate the relationship between purchasing strategies and performance management systems. Results show different stages of development of such systems and in general a higher focus on traditional performances such as cost, quality and time. Less diffused are indicators related to flexibility, innovation and corporate social responsibility, despite the relevance of such performances in today's competitive environment.