by Dhyey Consulting Services Pvt. Ltd.
A complete solution for Purchase KPI with Dynamics 365 Business Central.
The major scope of purchase department is, cost saving, on-time delivery, identify source and maintain supply to meet demand, improve performance of vendors, etc.
To achieve their goal, they need clear and authentic data to make the right decisions.
With the set of metrics as Purchase KPI (Key Performance Indicator), the procurement department can evaluate and track the efficiency of process, identify bottlenecks, improve productivity, and streamline the process.
Dhyey consulting designed a set of KPIs to help procurement department and management.
1) VENDOR ITEM ANALYSIS, VENDOR PERFORMANCE
Vendor / supplier analysis or performance is the practice of monitoring and analyzing quality, performance, reliably and punctuality.
- Analysis shows performance based on procurement history of each vendor from whom item is purchased for selected date period.
- Compare performance based on % and quantitative performance of received quantity and receipts.
- Compare vendor wise supplied quantity, no. of receipts, % of Delayed Receipts, % of on time Receipts, % of Return shipment, % of return quantity for selected vendor, item and date period and for all vendors-items.
- Find Vendors on Ship to Stock (100 % on time delivery and zero return/Rejection).
2) ITEM PURCHASE LEAD TIME
Lead time in material procurement is the amount of time it takes to receive from a supplier after the order has been place.
- Report calculates average amount of time it takes to replenish the item based on order date and posting date of purchase receipt.
- Vendor wise actual lead time is calculated to compare lead time among vendors.
- Lead time on item card and item - vendor catalog is shown for reference.
3) NON MOVING ITEMS
Non-moving items or dead stock items means items are not utilized at all over a specific timeframe. These are goods ended up idle in storage location for extended period time.
- Report shows items are kept idle for specified period, no sales, consumption transactions are done for a specified period.
- Non-moving items inventories end up due to various reason. E.g., more production, defective, rejected in QC, return from customer, obsolete, expired etc.
4) SHARE OF BUSINESS VENDOR PURCHASES
Share of vendors in procurement system is an analysis of vendor involvement and items supplied along with purchase cost amount in figure and %, Purchase quantity for selected period.
- Analysis shows procurement history of each vendor from whom item is purchased for selected date period.
- Compare vendor wise supplied quantity, procurement cost amount, discount amount, and % share of cost amount for selected item and date period with reference to % share define in item - vendor catalog.
- Pie chart analysis of % share.
5) INVENTORY REORDER
Reorder point is a stock quantity that sets the inventory below the level that you must replenish the item.
- Report find Item with fixed re-order policy and maximum qty when reorder point is defined and suggest quantity to order is reorder + demand calculation. For other policies if available quantity goes negative to clear demand, quantity to order is net demand quantity.
This app supports the Essential and Premium edition of Microsoft Dynamics 365 Business Central.
Canada, India, United Kingdom, and United States. Supported Languages English only.