An annual review of your procurement data is crucial for making smarter, more cost-effective buying decisions. The VigorBuy Spreadsheet is designed to help you do just that. By summarizing key performance metrics, you can move beyond individual transactions and gain a strategic view of your yearly spending trends.
Why Conduct an Annual Spending Review?
Reviewing your annual procurement performance allows you to:
- Identify reliable suppliers and underperforming vendors.
- Pinpoint categories with high costs or frequent issues.
- Benchmark performance over time to track improvement.
- Allocate future budgets based on data-driven insights.
- Standardize and optimize your buying criteria.
Key Metrics to Summarize in Your VigorBuy Spreadsheet
Focus on these three core metrics for a comprehensive performance evaluation:
1. Yearly QC Pass Rate
What it is:
How to Review:(Total QC Passed Items / Total Items Received) * 100. Chart this rate by month or by supplier. A declining or consistently low pass rate signals quality control issues that may be inflating hidden costs.
2. Annual Refund Ratio
What it is:
How to Review:(Total Refund Amount / Total Purchase Amount) * 100. A high refund ratio directly impacts your bottom line and indicates potential risks in supplier reliability or product specifications.
3. Average Delivery Speed
What it is:
How to Review:
How to Evaluate Performance & Optimize Decisions
With your metrics summarized, take these actionable steps:
- Create a Supplier Scorecard:
- Correlate Cost with Performance:
- Identify Patterns:
- Set Goals for Next Year:
- Update Buying Protocols:
- Correlate Cost with Performance:
Conclusion
The VigorBuy Spreadsheet transforms raw transaction data into a powerful strategic tool. By diligently summarizing and reviewing your QC pass rates, refund ratios, and delivery speed
Start your annual review today—your data holds the key to a more vigorous buying strategy tomorrow.