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You’re not a supply chain pro. You didn’t go to school for procurement. But here you are, needing to keep a production line running and figuring out how to buy electronic components without screwing it up. This guide is for you.
The good news is you don’t need to become a supply chain wizard, you just need to know which metrics matter — and how to act on them. Most supply headaches stem from not tracking the right things. We’ll show you four core Key Process Indicators (KPIs), plus a few early warning signs, that will give you real-time insight into your procurement health.
What Is Procurement Analytics?
Procurement analytics is simply the practice of monitoring key indicators, KPIs, so you can spot supply issues before they become line-down emergencies. It’s not about building a giant dashboard with 300 data points. It’s about watching the few things that matter most, constantly.
You’re not trying to predict the future. You’re just trying to see the present clearly enough to avoid disaster.
The Four KPIs That Matter
Here are the four metrics that matter most when it comes to maintaining continuity in electronics manufacturing. Track them, and you’ll have a lock on whether your supply plan is working or about to break.
1. Buy Actions
A buy action is any system telling you: "Place a PO for this part." That’s it. It’s your to-do list for procurement. If a buy action shows up and nobody acts on it? That’s how shortages happen.
If your tool (ERP, spreadsheet, BOM manager, manual requisition, whatever) generates buy signals, you need a process to:
- Review them daily
- Prioritize based on lead time
- Place POs promptly
Missed or delayed buy actions mean you’ve already started the countdown to a shortage.
2. Push / Pull / Cancel Actions
These are changes to existing POs. Your demand plan changed? You’ll need to adjust orders:
- Push: Delay the PO — you don’t need the part yet.
- Pull: Accelerate the PO — you need the part sooner.
- Cancel: The part is no longer needed at all.
If you’re not watching these, you’ll either:
- Receive material too late
- Receive material too early
- Forget to cancel obsolete orders
All three hurt. Ignoring cancel actions, in particular, leads to financial waste and surprises when excess inventory shows up.
3. Late Purchase Orders
This one’s dead simple: You placed an order. It hasn’t arrived. It’s late.
Every late PO is a red flag. It’s your earliest alert that a supplier might be about to cause you pain.
You should know:
- How many POs are late right now
- By how many days
- Which suppliers are repeat offenders
Late POs equal risk.
4. MRB Count
MRB stands for Material Review Board. This is your catch-all for parts that showed up, but something went sideways:
- The PO number didn’t match
- The part number is wrong
- The quantity’s off
- The item failed inspection
These are parts that look like they were delivered but can’t be used yet. They’re stuck in limbo. And if you’re not tracking this, you’ll think you have available inventory when you don’t.
Anything in MRB is a potential build blocker. You need a widely visible count and a plan to clear them fast.
Early Warning Indicators
Even before the big four metrics go off the rails, there are soft signals that things aren’t being managed well. These are warnings.
Compression
This happens when the system says you need a part inside its lead time. That means you’re already behind. For example:
- Lead time: 10 weeks
- Buy action says: need in 4 weeks
That’s compression. It’s a warning that your material planning isn’t keeping up.
Late Buy Actions
Buy signals are showing up and no one’s acting on them. Ask yourself:
- How long do buy actions sit before getting addressed?
- Is that delay reasonable for your environment?
In a fast-moving startup, even 48 hours could be too long. In a slower-paced org, maybe a week is fine. Either way, you need to measure it.
Ignored Cancel Actions
Cancel messages often get ignored. But they matter — especially for your budget.
Canceled parts that don’t get actioned:
- Still get delivered
- Still get paid for
- Still take up shelf space
Worse, they often hide in plain sight until finance or warehouse teams flag them.
MRB Aging
It’s not just how many items are in MRB — it’s how long they’ve been there.
You should set a standard (say, 48 hours max), and track how long each item sits. When MRB ages out of your standard, it means problems aren’t getting resolved. One week is a fairly typical standard, but a dirty little secret is MRB items often age for months if not widely visible.
Data Hygiene Matters
Even perfect metric tracking won’t help if the data behind those metrics is bad. Here’s what to watch for:
Bad MPNs (Manufacturer Part Numbers)
If your MPN is wrong, buyers can’t place an order. That means late buys by default. Common causes:
- Typos
- Outdated part revisions
- Unclear or ambiguous nomenclature
If you can’t buy the part, you can’t build the board.
Missing or Incorrect Data
The three most common offenders:
- Vendor: No assigned vendor = no way to place the PO.
- Lead Time: Missing lead time = can’t plan ahead.
- Cost: Wrong pricing = buyer has to stop and check.
Fix this stuff. It’s basic, but it’s foundational.
Pro Tip: If whoever does your purchasing is constantly having to stop and ask questions, you have a system problem and it’s likely data hygiene.
Other Metrics Worth Watching
You don’t need to build a 20-page dashboard, but a few more metrics help validate whether your procurement process is running well.
Supplier On-Time Delivery (OTD)
This one tracks whether your suppliers are showing up on time. Target at least 95% OTD. Anything under 90%? You're in risky territory. More on OTD here.
Supplier Quality
Measure inbound acceptance rates from your suppliers. Start out by just keeping track of the number of shipments you need to return. As your systems mature you can track the percent of material rejected (if you receive 100 pieces and return 20 that’s 20% non-conformance rate).
Days of Inventory
30–45 days of stock is usually healthy assuming your supplier performance is very good. Less than 20? You’re playing with fire. More on DIO.
Final Word
If you’re building electronics, you’re in the hardware business — and hardware is a supply chain sport. The engineering might be elegant, but if your procurement process breaks, your builds won’t happen.
Watch your buy actions. Monitor late POs. Fix your MRB log. Stay on top of early warning signs and don’t let data rot creep in. You don’t need to go crazy — you just need to track what matters.
Ready to let Cofactr handle sourcing, negotiations, storage, kitting, and delivery while your team focuses on building products? It’s free to get started with Cofactr today.
Frequently Asked Questions
What is procurement analytics?
Procurement analytics is monitoring a small set of key indicators to spot supply risks early, helping prevent production line shutdowns without complex dashboards or advanced supply chain expertise.
How to prevent production line downtime in electronics manufacturing?
Focus on tracking buy actions, PO changes, late purchase orders, and MRB counts daily, acting quickly on signals to avoid shortages before they turn into line-down emergencies.
Why does missing a buy action cause shortages?
A missed or delayed buy action starts a countdown to shortages because required parts are not ordered on time, making it impossible to meet demand within supplier lead times.
What is a buy action in procurement?
A buy action is a system-generated signal telling procurement to place a purchase order for a specific part, forming the core to-do list for maintaining material availability.
What are push, pull, and cancel actions?
Push, pull, and cancel actions are changes to existing purchase orders that delay, accelerate, or eliminate orders based on updated demand, preventing late deliveries or excess inventory.
Why are late purchase orders a major risk?
Late purchase orders indicate suppliers are missing commitments, serving as early warnings of potential production disruptions and highlighting which suppliers may repeatedly threaten manufacturing continuity.
What is MRB and why does it matter?
MRB, or Material Review Board inventory, includes unusable delivered parts stuck in review, creating hidden shortages that can block builds if not tracked and resolved quickly.
How to identify early warning signs in procurement?
Watch for compression, late buy actions, ignored cancel actions, and aging MRB items, as these signals show planning gaps before core procurement metrics completely break down.
Why does data hygiene impact procurement performance?
Incorrect part numbers, missing vendors, inaccurate lead times, or wrong costs slow buyers down, delay orders, and undermine even the best procurement metrics and processes.
Is it necessary to track supplier on-time delivery?
Yes, supplier on-time delivery validates procurement health, with targets above 95% indicating stability, while performance below 90% signals elevated risk to manufacturing schedules.
How many days of inventory is considered healthy?
Maintaining roughly 30–45 days of inventory is typically healthy with strong suppliers, while less than 20 days increases risk and excessive stock ties up cash unnecessarily.