Strategic Fleet Control: The tool to honor contracts, increase trust and optimize your operations.
In commercial contracts, what gets measured gets improved. Many companies focus only on sales volume but ignore other critical factors that directly impact profitability. These 5 KPI families will give you a 360° view of your commercial agreements’ performance.
1. Volume/Purchase KPIs → more
- Focus on quantities and purchase frequency.
- Key examples:
- % of monthly volume compliance
- Order frequency vs. agreement
- Actual consumption vs. committed
2. Financial KPIs → more
- Related to payments and contract’s financial health.
- Key examples:
- Days past due (DPO)
- % of invoices paid on time
- Total amount in dispute
3. Operational KPIs → more
- Measure process and service compliance.
- Key examples:
- SLA compliance rate
- Average response time
- % of error-free orders
4. Strategic KPIs → more
- Evaluate the contract’s global impact.
- Key examples:
- ROI per contract
- Post-contract retention rate
- Management cost per contract
5. Key Account KPIs → more
- Analyze customer behavior and value.
- Key examples:
- Share of Wallet (SOW)
- Satisfaction linked to compliance
- Customer Lifetime Value (LTV)
Case study
A manufacturing company implemented this KPI system and discovered:
- 30% of contracts had low volume compliance
- 40% of invoices were paid late
- Only 60% of key accounts were satisfied
After adjusting their strategy, they increased contract profitability by 25% in 6 months.
Conclusion
Not all metrics are equally relevant for all contracts. The key is to:
- Select 3-5 KPIs per family according to your industry
- Ensure your measurement with services like JCR Analytics SFC
- Take data-driven actions
Discover how CEF can fit your industry!