What is the Product Performance report?

Measuring your own procurement performance is always a tricky subject. How do you know 
if you have achieved a good negotiation result? After all, there is no reference against which 
you can measure the negotiation result. It is often impossible to find out whether you have 
achieved a better negotiation result than the competition.

Often, by default, the old buying condition(s) are used as a reference point. However, one might ask oneself how realistic this actually is. If raw material prices already determine on average 40% of the purchase price, then raw material price changes will also have an important, if not the most important, impact on the final outcome of the negotiation. 

The WTP application does make it possible to compare the development of the purchase 
price with the development of the cost price calculation. This therefore does provide a 
reference point against which one can measure the negotiation result. A prerequisite, 
however, is that you enter enough items in WTP for this purpose. Ideally, this should be 
more than ten items per supplier and/or product category.

If you want to know more on how to create a Product Performance report, please review 'How do I create a Product Performance report?'