Contract and Supplier Management Guidance


Key Performance Indicators

  • Are you measuring something meaningful?
  • Can you measure it?
  • What will you do with it?
  • Is it easy to comprehend?
  • Is it relevant?
  • What is your target / performance measure?
  • Who will provide, gather and measure the data?
  • How will the results be communicated?


Fewer, more relevant KPIs that you can monitor effectively are more beneficial than many that are difficult to measure or irrelevant.

Consider whether the KPI you are proposing should actually be a mandatory requirement in your specification, or whether you require a Service Level Agreement.

If your agreement is a Framework you could have KPIs both at the Framework level and at the Call off contract level:

  • The Framework Agreement could include high level SMART KPIs and contract management procedures for APUC to manage the Contractor;
  • The Call-off contract awarded by the institution may include contract specific SMART KPIs and defined contract management (so long as this does not breach the Framework Agreement terms).


Indicative KPIs are provided below, both financial and non-financial. A 'Leading' KPI is one that is pushing for compliance, and a 'Lagging' one is that monitors achievement to target.

KPI Example Leading KPIExample Lagging KPI
HSENumber of Management HSE VisitsTRIF = Frequency of total recordable injuries / 200,000 man hours
EfficiencyAttendance at planning meetings% of jobs delivered according to agreed plan
QualityCompliance with quality plan% rework required
People% performance appraisals completed% turnover of personnel
InnovationNumber of innovative ideas submitted by supplierValue added to the company from innovative ideas
CostActual cost vs plan budget$ savings achieved


CategoryMeasureTargetData SourceCalculation Method
KPI 1ServiceDelivery (in full). To ensure that all orders placed in the period, are delivered in full98%No. of shortages reported1 - (no. of inaccurate deliveries / total number of deliveries) x 100
KPI 2ServiceDelivery (on time). To ensure that all deliveries in the period are made on time.98%No. of deliveries missed1 - (no. of missed deliveries / total no. of deliveries) x 100
KPI 3QualityProducts supplied, in the period, to meet agreed standards.99%No. of unacceptable items delivered1 - (no. of unacceptable items / total no. of products ordered) x 100