Procurement performance management refers to the systematic process of measuring, monitoring, and improving the performance of the procurement function within an organization. It involves defining key performance indicators (KPIs) and metrics to assess the effectiveness, efficiency, and value delivered by procurement activities.

Procurement performance management encompasses activities such as data collection, analysis, reporting, and benchmarking to evaluate procurement performance against targets and industry best practices. It enables organizations to identify areas for improvement, track cost savings, measure supplier performance, monitor compliance, and drive continuous process enhancements.

Through procurement performance management, organizations can optimize procurement operations, enhance decision-making, and demonstrate the value of procurement contributions to overall organizational success. Procurement Performance Management is distinctly different to Supplier Performance Management.