A Perspective on Sourcing Operations and Compliance From Honeywell’s Camille Batiste Jason Busch - July 31, 2015 11:32 AM | Categories: Analytics, Conferences, Industry News, Procurement | Tags: ISM, L3, Process & Best Practice On Thursday at the Institute for Supply Management Metrics conference, in Philadelphia, Camille Batiste, vice president of sourcing operations and compliance at Honeywell, gave an engaging talk on procurement measurement and metrics. At Honeywell, her organization, sourcing and procurement, also owns operational excellence, which manages reporting as part of its charter. While much of the talk engaged the audience in an interactive manner, Batiste also shared both historical and current metrics she recommends for using to measure the impact of procurement on the organization. Historical metrics include many focused on delivering costs savings, such as: Cost avoidance Savings (basis unclear) Cycle time Automation Number of contracts/contract compliance Price reductions But there are more valuable metrics procurement can deploy, Batiste argues, that can help tie its success directly to business success. The challenge with these rear-facing metrics, in part, is they may not fully factor into account: Price increases (indirect) Consumption increases/decreases and impact to total cost Increased consumption – which does not mean more savings! What matters most is metrics alignment between procurement and the business. Here, Batiste suggests considering procurement’s direct impact and corresponding KPIs in the following types of areas: Revenue, including quality, delivery, scrap sales and compliance Income, including spend (cost), spend as percent of revenue, purchase price variance (PPV), price per each pound/ton. Working capital, such as inventory and payment terms To drive overall metrics alignment, she suggests: Starting with the financials in mind Looking at forecasted spend, not just historical Aligning procurement strategy with business strategy Seeking feedback from key stakeholders Stay tuned for additional coverage from the ISM Metrics event on Spend Matters next week! And participate in the ISM / Spend Matters snap poll on procurement metrics.* * The poll only takes 5-7 minutes and will be invaluable in facilitating our session. If you take part in the poll, we will also share back not just the results, but also our conclusions from this part of the symposium. After we’ve analyzed the data, we'll send you an invitation to a webinar where we'll show the study results and a few examples of how some of the leading companies are bringing rigor to this area. You will also receive a copy of the webinar presentation. All responses are confidential and will only be reported in aggregated form. By responding to this survey, you acknowledge and consent to use of data provided. Related ArticlesMeet the Spend Matters Team at ISM Metrics and Analytics Symposium in Philly This Week!Snap Poll With ISM: What's the Procurement Value Mix Today? In 3 Years?What Do Procurement Metrics and Procurement Analytics Have in Common? Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email.