The first panel discussion at the MHP Procurement Conference 2024: Big Business about Procurement: summary
Kyiv • UNN
At the MHP Procurement Conference 2024, experts discussed the evaluation of procurement performance. Speakers emphasized the importance of measuring the work of the procurement department and forming their own indicators in companies.
The first panel discussion at the conference "MHP Procurement Conference 2024: Big Business about Procurement" has ended, UNN reports.
We joined it:
- Dmytro Ptashnyk, Director of MHP's Procurement Department;
- Oleksandra Shekhovtsova, Procurement Director at Raiffeisen Bank Ukraine;
- Taras Nikolayenko, Chief Procurement Officer, Fozzy Group;
- Andriy Teliupa, Director of the Procurement Department of the National Bank of Ukraine.
The speakers discussed a lot about evaluating the effectiveness of the procurement process and emphasized that it is imperative to measure the work of the procurement department. After all, each company develops its own indicators over time.
For example, the National Bank of Ukraine has 3 indicators to measure. One of them is measuring the percentage of procurement that is conducted through open tenders. This is how they maintain transparency.
Raiffeisen Bank has 5-6 indicators, where the weight of each is at least 10% to make its achievement noticeable.
In addition to OKR, MHP also measures employee satisfaction with the company's cooperation with the market and evaluates interaction with internal customers. Over the past year, it has doubled.
Fozzi Group pays attention to EBITDA and external NPS.
It is interesting that the speakers suggested replacing the word "price" with "value" when referring to the work of the procurement department. After all, its function is often overlooked. Because everything is clear with sales - they bring in money. Procurement does the same, but... by spending.
For example, by forming added value for the business and relations with the market. Procurement must also have work policies with clearly defined rules and requirements.
Another important component is the prevention of reputational risks. After all, the supplier's background is always taken into account in both public and private procurement. Procurement is usually one of the business processes that will never be static. Therefore, you should be prepared for constant transformation and flexibility to meet business needs.
