Measuring the Effectiveness of Public Procurement
نویسنده
چکیده
Measuring and reporting the effectiveness of procurement is a new challenge in the field of purchasing. In many organizations the effects of purchasing have not been determined or evaluated. The procurement effectiveness reporting tool will produce information on the effects of procurement that can be then used in developing the purchasing activities in an organization. This thesis gives the reader an example of an approach on how to measure and report procurement effectiveness through different variables. The commissioning organization was VTT Technical Research Centre of Finland and the reporting tool was created and customized for their needs. The following objectives were determined: defining different methods of measuring procurement effectiveness (1), creation of a procurement effectiveness reporting tool aligned with the corporate and procurement strategies (2) and drawing development plans for effectiveness reporting (3). The procurement effectiveness reporting tool focused on developing effectiveness factors that can be evaluated by using an evaluation scale. The aim of the research was to create a tool for the needs of the commissioning organization. The theoretical background was established by acquiring information from literature, previous research and professional journals. The theory was used for applying ideas and methods to develop the reporting tool. Internal interviews and workshops were used to scan the challenges and issues with the current reporting tool. External interviews were used to find new ideas and concepts that could be applied to the reporting. Through the conducted research, a procurement effectiveness tool was created that fitted the needs of the commissioning organization. The tool focused on evaluating the other effects of procurement and on creating a common alignment for determining the cost savings produced.
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