Procurement is one of the most important operations in any organization. To effectively manage this process, it is vital for the organization to measure and monitor its procurement performance. Not only measuring, but also managing and predicting the procurement performance can secure the organization a competitive edge in the market. In this paper, we propose a System Dynamics model for measuring, managing and predicting the procurement performance. Appropriate Key Performance Indicators of the procurement process have been selected as the variables of the model based on the literature of procurement performance measurement and also domain experts’ opinions. The model is then validated and some directions for future research have been discussed.