The article Performance management models and purchasing: Relevance still lost discussed that for many years research on purchasing power and trends has been a hot topic of discussion that has been explored and promoted by many authors. At the same time, in their descriptions, the authors focus on different directions. So, for example, some delve into studying buyers’ performance, while others focus on suppliers. In the article, the authors study the correlation of performance measurement systems (PMSs) in terms of purchasing power.
The concept of system measurement performance has many different interpretations. At the same time, key factors for qualitative measurement are highlighted, including assessment, management, strategic formulation, dialogue, improved prioritization, and others. After studying five popular systems for measuring performance, it is concluded that many researchers recognize a correlation between improving internal processes in a company and purchasing power. Each of the systems is based on different key performance indicators. However, each of the PMS systems requires further development and is not a perfect representation of customer performance in the business industry.
In conclusion, the Performance management models and purchasing: Relevance is still lost; the authors came up with a six-step design to create a PMS that reflects the real state of market forces. Steps include setting a clear goal and concepts, creating a relationship between supply PMS and organizational PMS, as well as between performance and supply, in addition to involving purchasing staff in the development and periodically reviewing the indicators. As a result, using the author’s recommendations, it is possible to create an optimized system since none of the existing ones, including the most popular ones, meets the criteria for a full-fledged measurement of purchasing power.