TheKPI Contract Leakage Percentagemeasures the extent to which procurement spend occurs outside of existing contracts. Specifically, it tracks purchases made without referencing an existing contract, even though a valid contract is in place.
Spend of purchase orders without contract reference despite existing contract (Option A):Contract leakage occurs when purchase orders are created without referencing an existing contract, leading to missed opportunities for leveraging negotiated terms. TheSAP Procurement Analytics Guideconfirms this definition.
B. Confirmed spend of purchase orders with contract reference:This represents compliant spend and does not contribute to contract leakage.
C. Confirmed quantity of purchase orders with contract reference:Quantities with contract references are not relevant to measuring contract leakage, as they indicate compliance.
D. Quantity of purchase orders without contract reference despite existing contract:Contract leakage is measured in terms of spend, not quantity.
SAP Procurement Analytics Guide:Defines the KPI Contract Leakage Percentage and its calculation.https://help.sap.com
SAP S/4HANA Cloud Procurement Guide:Provides insights into contract compliance and leakage metrics.
Why Option A is Correct:Why the Other Options Are Incorrect:Key References:
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