No Item in Cart
The Ultimate Guide to Setting Procurement KPIs for Maintenance Teams
Introduction
You can’t improve what you don’t measure. That’s why setting the right KPIs (Key Performance Indicators) is essential for optimizing spare parts procurement. For maintenance teams, KPIs are not just performance metrics — they’re the backbone of reliability, uptime, and cost control.
In this guide, we’ll walk you through the most important KPIs every maintenance team should track and how HUB’s industrial procurement ecosystem helps you measure and act on them.
📊 1. Order Lead Time
Definition: The time between placing an order and receiving the part.
Why it matters: Long lead times can delay maintenance or emergency repairs.
How HUB helps: HUB automatically tracks lead times by vendor and item, and notifies users when expected delivery windows are exceeded.
🔁 2. Stock Turnover Rate
Definition: How many times inventory is sold/used and replenished in a given period.
Formula:
Stock Turnover = Total Usage / Average Inventory
Why it matters: High turnover means better inventory efficiency. Low turnover can indicate overstocking or unused items.
How HUB helps: HUB calculates turnover trends and flags stagnant items that can be resold or reallocated.
⚠️ 3. Emergency Purchase Ratio
Definition: Percentage of purchases made outside the planned schedule due to urgent need.
Formula:
Emergency Purchase % = (Urgent Orders / Total Orders) × 100
Why it matters: High ratios show a reactive system and cost inefficiencies.
How HUB helps: HUB tracks urgent orders separately and helps shift toward predictive planning through usage analysis and automated reorder points.
🧾 4. Purchase Order Accuracy
Definition: The percentage of POs fulfilled without errors (correct item, quantity, spec).
Why it matters: Reduces rework, downtime, and trust issues with vendors.
How HUB helps: All POs go through digital approval workflows and vendor matching, reducing human error and improving accuracy.
📅 5. On-Time Delivery Rate
Definition: Percentage of parts delivered on or before promised date.
Why it matters: Reliable vendors = smoother maintenance scheduling.
How HUB helps: HUB tracks vendor performance and delivery history, helping you choose based on data, not guesswork.
💵 6. Procurement Cost per Order
Definition: Total cost incurred per procurement cycle (not just part price).
Why it matters: Includes labor, follow-ups, errors, freight — essential for real cost analysis.
How HUB helps: HUB generates cost reports factoring all inputs, including logistics, overhead, and time delays.
✅ Conclusion
Setting KPIs is only half the job — tracking and acting on them is what drives results. With HUB, maintenance teams can monitor key procurement metrics in real time, identify weaknesses, and continuously improve efficiency and uptime.
🔗 Start measuring KPIs with HUB : www.HUBspareparts.com
🔗 Book a free consultation for KPI setup: WhatsApp Chat
