I will take as an example of the procurement report (weekly/monthly).
Why I can say that report is efficient because of the following reasons mentioned below:
It is an auto-generated report that pulls the data from the system and sends an automatic email to the team (weekly). The report comprises the vendor details, item description, category or section, cost (material, freight & duties), order status, and timeline to reach the factory, etc. This allows team to track the purchase list and plan the work (maintenance) at the factory.
The report is generated monthly in a standardized format with consistent charts and tables, which makes it easy to visualize at a glance.
The report will give real-time visibility to the report because it is integrated with Power BI, so anyone can access and view the report.
From a business excellence perspective, this seems ineffective because it focuses on reporting data rather than driving strategic actions and value optimization.
Lack of Actionable Insights:
While the shows you that what was spent and where, it rarely explains why the purchase occurred or what opportunities exist for optimization. For example, it might show a high spend in the "machine category or particular machine section," but it won't show if that purchase was strategic, redundant, or if there were better alternative options.
Hiding Inefficiencies and Poor Practices:
A high expense shown for "emergency breakdown machine parts that we bought and also items shipped by air cargo (air freight cost higher than sea freight)" in the report, but the report doesn't give an idea why these purchases occur and what the manufacturing loss will be if these items do not arrive on time to the stakeholders (e.g., poor planning, lead time, vendor issues, etc.).
Supplier Performance Valuation:
The report focuses on items bought in different "categories and section" and how much the "supplier contributes in overall purchases", not on supplier performance or contract compliance. It won't highlight if a low-cost supplier is consistently delivering the material late or with quality issues, which leads to manufacturing downtime & production loss.
Focus on Cost, Not on Value:
The report highlights the expenses, it doesn't show what value was received for that purchase. Higher expenses in a certain category might be justified to the stakeholders if they lead to significant improvements in productivity and quality.