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Without performance metrics, it is difficult to determine what areas need to be improved. Benchmarking provides an opportunity for companies to evaluate their performance against firms who perform well in various areas, as well as compare products or services against the competition. Defining procurement metrics that are tied to overall organizational objectives ensures that the correct elements are being measured, as well as linking contributions back to the fulfillment of those objectives. Internal procurement metrics provide feedback on how well both individuals and the department are performing over time, and identifies areas that need improvement. Evaluating suppliers in all areas of supply chain activities, as well as finances and sustainability practices, allow organizations to determine which suppliers are preferred for additional products and services and which ones need improvement or should be eliminated.
The introduction of new technologies such as artificial intelligence, blockchain, and Internet of Things, continues to improve the supply chain by providing real time end-to-end visibility, automation of processes, and advanced analytics, making it easier and faster to manage and access data, trace product origin, form decisions, and collaborate with supply chain partners.