Activity Analysis In Procurement

An Activity Analysis is a valuable tool for evaluating the workload and efficiency of purchasing positions, offering actionable insights into the alignment of assigned tasks with available work hours. By analyzing time spent on various procurement activities and comparing the results to the standard 2,080 hours per year, an Activity Analysis can identify whether a purchasing role is overburdened or underutilized.

For overburdened positions the excess workload can lead to critical tasks, such as strategic sourcing supplier negotiations and cost reduction initiatives, being deprioritized or left incomplete. This not only negatively impacts the organization’s ability to achieve cost savings, but also hinders the development of long-term supplier relationships and operational improvements. Conversely, underutilized roles may signal inefficiencies or opportunities to reallocate resources for greater impact.