Indicators are predictors of future trends. For example, the Procurement Manager’s Index is a leading indicator of levels of business activity and the number of job advertisements is a leading indicator of employment levels. Both indicators provide an ‘early warning’ of the trends in key dimensions of the business environment. Conversely, lagging indicators occur in retrospect or simultaneously with the trend to which they relate. Extended lead times are a lagging indicator of supply shortages, and consumer price inflation indices are a lagging indicator of changing prices. See also Scenario Planning.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
