Volume/Purchase KPIs: Your Compass for Contract Compliance

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Strategic Fleet Control: The tool to honor contracts, increase trust and optimize your operations.

In sales contracts, volume commitments are the foundation of commercial relationships. But how do you know if clients are truly complying? These KPIs will give you the clarity to detect deviations early, renegotiate terms, and protect profitability.

Key KPIs and How to Measure Them:

  1. % of Monthly Volume Compliance
    • Formula: (Actual volume / Agreed volume) x 100
    • Example:
      • Contract: 1,000 units/month
      • Actual: 750 units
      • Compliance: 75% (Yellow flag!)
    • Action thresholds:
      • <80%: Immediate review
      • 80-95%: Weekly monitoring
      • >95%: Consider incentives
  2. Order Frequency vs. Agreement:
    • Retail case:
      • Agreed: 4 orders/month at $25K each
      • Actual: 2 orders/month at $40K
      • Issue: Irregular cash flow and stock risk
  3. Actual vs. Committed Consumption (Annual)
    • B2B manufacturing example:
      • Client committed to 12,000 units/year (1,000/month)
      • After 6 months: only 4,500 units (62.5% of target)
      • Solution: Auto-adjustment clause with 5% penalty

Common Measurement Mistakes:

  • Ignoring seasonality (e.g., holiday sales).
  • Mixing unit types (e.g., liters vs. cases).
  • Overlooking contractual minimums in flexible agreements.

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