Chapter 19: Performance Measurement and Evaluation

Chapter Questions
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Chapter 19:
Why Organizations are Shifting Their Focus towards Strategic Measures for a Desired End Result than Operational Measures Focusing on Buyer Activity
Organizations are shifting their focus towards strategic measures for a desired end result than operational measures focusing on buyer activity because operational measures focusing on buyer activity are equivalent to short-term fixing solutions which are not sustainable. Operational measures focusing on customer activity do not address cultural change which would have shifted the company towards accomplishments and enforcement of universal adherence to the best practices that eliminate majority of the recurring problems (Monczka et al. 2015). Strategic measures, on the other hand, takes a holistic view of the problems that result in less than optimum performance and seek for standard procedures and processes to a company that will see them reach the optimum performance in the end. Strategic measures establish how work is planned, managed and executed in a clear and concise manner leading to changed processes and changed performance culture that is essential to sustainable world-class performance.
Importance of Performance Bench Marking When Establishing Purchasing Performance Goals and Objectives
When a company is establishing the purchasing performance goals and objectives, it wants to ensure that the products purchased are at the right prices, right source, delivered at the right time and to the right customer. It also wants to identify areas where the purchasing process can add true value to the customer among others. Benchmarking would be essential in this process in ensuring that the company comes up with the purchasing performance goals and objectives which are in line with the industry and customer needs needs (Monczka et al. 2015). For instance, it shall ensure that the goods are delivered in good prices and at the right time as is desired by the c...