Corporate Governance - Governance, Risk, and Compliance Topic for Oracle Applications - page 66

In this dashboard you can see following metrics:
• Total Spend : The total amount spent overall.
• Payables Leakage Rate : (Leakage Amount/Invoice Amount)*100. This is
the Invoice amount for invoices that did not match to a purchase order or
receipt, as a percentage of the total invoice amount. Use this KPI to identify
how much of your invoice amount has not gone through your procurement
organization. A lower rate is desirable.
• Non-Contract Purchases Rate : (Non-Contract Purchases Amount/
PO Purchases Amount)*100. Percent of non-contract purchases to the
total purchase amount. Non-contract purchases occur when, for an item
purchased on a standard purchase order, there was no negotiated pricing
(no blanket purchase agreement in place. Use this KPI to measure the
percentage of purchases made without any contract being in place. A
lower rate is desirable.
• Contract Leakage Rate : (Leakage Amount / PO Purchases Amount) * 100.
This is percentage of contract leakage to the total purchase amount. Contract
leakage occurs when, for an item purchased on a standard purchase order, a
blanket purchase agreement was in effect that could have been used instead.
Use this KPI to measure the percentage of purchases that are made off-
contract. A lower rate is desirable.
• Spend by Category : The total amounts spent in each procurement category.
• Spend by Supplier .
• Savings Potential : The difference between the average amount paid for an
item and the lowest amount paid for an item.
These metrics are available to be analyzed along the following dimensions:
• Time
° Year
° Quarter
° Month
• Business Unit
• Cost Center
• Top Level Item Category
• Supplier