Key Performance Indicators (KPIs) are measurable objectives used to evaluate the performance of an organization or a specific process. In the context of procurement, KPIs are used to measure and improve the effectiveness of the tender process. By tracking the right KPIs, you can gain insight into which steps in the process are working well and which can be improved, such as the success rate of your tenders or the time it takes to prepare a tender.
KPIs help companies optimize their tender strategy by identifying and improving weaknesses in the process. Measuring KPIs keeps your tender team focused on what is important and allows you to adjust your strategy as needed. By regularly monitoring your KPIs, you can improve the efficiency of your tender process and increase your chances of success in tenders.
1. Number of tenders won:
The success rate of your tenders is one of the most important KPIs. This KPI measures how many tenders you won relative to the number of tenders you submitted. A high success rate means that your tender strategy is effective and well-suited to the needs of contracting authorities.
Tip: Analyze why you win tenders and why you sometimes lose. This can help you improve your EMVI elaboration or adjust your pricing strategy.
2. Average time for enrollment:
How long does it take to prepare and submit a complete tender? This KPI measures the efficiency of your tender team and processes. Spending too much time preparing a tender can limit your flexibility and increase costs.
Example: Suppose you need an average of 30 days to submit a tender, while competitors need only 20 days. By optimizing your internal processes, you can respond faster and win more tenders.
3. Cost per enrollment:
This KPI measures the average costs you incur in preparing and submitting an entry. Consider the cost of personnel, outside consultants, documentation, and any technical support. Reducing cost per tender without sacrificing quality can improve your profit margins and increase your competitive advantage.
4. Number of enrollments per year:
This KPI tracks how many tenders your company submits per year. This helps you see how active you are in the procurement market. A healthy number of tenders per year indicates that your organization is actively participating in tenders, while too few may indicate that you are missing opportunities.
5. Success rate of EMVI elaborations:
A KPI that measures how well your EMVI elaborations score on the award criteria. This KPI gives you insight into the quality of your qualitative tenders. If you see that you are scoring low on certain parts of the EMVI, you can specifically address this to increase your chances of success.
6. Average award score:
This KPI indicates how high you score on average on the award criteria of tenders. By analyzing how you perform on different award criteria, such as price, quality, sustainability or risk management, you can make targeted improvements to your tenders.
7. Number of tenders in which you achieve preselection:
This KPI tracks how often you get through the first selection stage in a procurement process. This gives you insight into how well your company performs during the first round of tenders and whether you understand pre-selection criteria well.
8. Customer satisfaction after award:
This KPI measures the satisfaction of the contracting authority after award. It is important to know how well you met customer expectations after you win the contract. Satisfied clients are more likely to select you again for projects in the future.
9. Number of complaints or rejections:
This KPI tracks how many times your tenders have been rejected or complaints received from contracting authorities. A high number of rejections may indicate that you need to adjust something in your process or that you are not properly aligned with client requirements.
1. Determine the right KPIs for your organization:
Not every KPI is relevant to every business. It is important to select KPIs that fit your organization's specific goals and strategies. For example, if you submit a high volume of submissions but your success rate is low, you'll want to focus your KPIs on improving the quality of your submissions.
2. Monitor KPIs regularly:
It is important to regularly monitor and track your KPIs. This allows you to see trends and make timely adjustments. Make sure you have set times to discuss progress with your tender team and analyze numbers over longer periods of time to get a clear picture.
3. Use KPIs to adjust:
KPIs are only useful when you use the results to take action. For example, if you notice that the cost per tender is too high, you can look for ways to optimize your processes or reduce unnecessary costs. If you see that on average you score poorly on certain award criteria, you can adjust your strategy to better address this.
4. Link KPIs to clear objectives:
Make sure each KPI is linked to concrete goals. For example, if your KPI is "Average time to enroll," your goal might be to reduce that time by 15% by using faster tools or more efficient team collaboration.
5. Make KPIs transparent to the entire team:
Make sure your tender team always has access to the latest KPI data so everyone knows where areas for improvement are and where the focus should be. Transparency in performance and goals can help keep the team motivated and focused.
KPIs are essential for improving the efficiency and effectiveness of your tender process. They provide insight into your performance, help you identify areas for improvement and enable you to make more informed strategic decisions. By using KPIs correctly, you can optimize your tender strategy and increase your chances of success in tenders.
