Measuring and Communicating Success

Follow this step-by-step process

Measuring and communicating the progress and effectiveness of your collaborative commerce initiative is critical for long-term success. Experience tells us that it’s very important you adhere to a specific series of steps—at least initially—to define and implement your measurement program:

  1. Identify the program’s leaders, users, and other stakeholders, including executive sponsors. If you're not sure who the sponsors are, answer this question: Who “wrote the check” for the program?
  2. Make sure everyone clearly understands and aligns with the challenges, objectives, and goals that led to the initiative.
  3. Working together, establish key performance indicators (KPIs) in line with your objectives and goals. While there are many things that can be measured, focus initially on the metrics in the table below. Select those which are most applicable to your situation.
  4. Define your current-state baselines.
  5. Implement incentives to ensure resource goals are aligned with program goals.
  6. Report (and report, and report) your results.

Objective

Metric

Best-in-Class

Process Efficiency
(Closely aligned with Accounts Payable)

% of addressable spend that
is automated

80%

% of electronic invoices

67%

invoices per FTE

33,000

% of invoice exceptions

12%

days to approve invoices

4.1

touchless invoice processing

85%

Compliance
(Closely aligned with Procurement)

contract leakage savings

0.46%

% of spend under management

55%

Cash Management
(Closely aligned with Finance/Treasury)

discount capture

0.20%

working capital

0.27%

 

Next...

Drive Supplier Participation