Open Standards Benchmarking Measure List
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1 Cost Effectiveness Total cost to perform the process "order materials and services" per $1, Total cost to perform the process "order materials and services" per $1, Total cost to perform the procurement process group as a percentage of Total cost to perform the procurement process group per $1, Total cost to perform the procurement process group per $1, Total cost to perform the procurement process group per process group FTE Total cost to perform the procurement process group per purchase order Cost of goods sold as a percentage of Personnel cost to perform the process "order materials and services" per $1, Personnel cost to perform the process "order materials and services" per $1, Systems cost to perform the process "order materials and services" per $100, Systems cost to perform the process "order materials and services" per $100, Total cost to perform the process "order materials and services" per purchase order Total cost to perform the process "order materials and services" per purchase order line item Total cost to perform the procurement process group as a percentage of cost of goods sold (COGS) Total cost to perform the procurement process group per purchase order line item Overhead cost of the process "order materials and services" per $1, Other cost of the process "order materials and services" per $1, f / ( *.001) a f / ( *.001) a ( / ) * 100 a / ( *.001) a / ( *.001) a / ( a / a ( / ) * a / ( *.001) a / ( *.001) b / ( *.00001) b / ( *.00001) f / f / / * / c/( *0.0010) d/( *0.0010) Page 1
2 Cost Effectiveness Process Efficiency Outsourced cost of the process "order materials and services" per $1, Number of FTEs that perform the process "appraise and develop suppliers" per $1 billion Number of FTEs that perform the process "develop sourcing strategies" per $1 billion Number of FTEs that perform the process "order materials and services" per $1 billion Number of FTEs that perform the process "select suppliers and develop/maintain contracts" per $1 billion Number of FTEs for the procurement process group per $1 billion Percentage of purchase orders approved electronically "Develop sourcing strategies" FTEs as a Number of FTEs that perform the process "develop sourcing strategies" per $1 billion Number of FTEs that perform the process "order materials and services" per $1 billion "Order materials/services" FTEs as a Percentage of purchase value from certified vendors / ( * ) a / ( * ) a / ( * ) a / ( * ) a ( ) / ( * ) / ( * ) / ( * ) ( / ( a a Raw material inventory turns "Appraise and develop suppliers" FTEs as a Transaction amount per purchase order Number of FTEs that perform the process "appraise and develop suppliers" per $1 billion e/( *0.0010) ( / ( ( / ( / ( * ) Page 2
3 Process Efficiency Cycle Time Percentage of purchase order line items transacted using e-procurement enabled catalogue suppliers Percentage of purchase orders received complete Percentage of purchase orders received damage free Percentage of supplier orders received by original request date (on time) Percentage of total number of goods receipts received without item and quantity verification Percentage of total procured via maverick buying "Select suppliers and develop/maintain contracts" FTEs as a percentage of procurement FTEs Strategic suppliers as a percentage of all active suppliers Number of active vendors in the master file per $1 million Number of FTEs that perform the process "select suppliers and develop/maintain contracts" per $1 billion Number of FTEs that perform the procurement process group per $1 billion Average supplier lead time on purchased materials ( / ) * ( / ) * ( / ( / ( * ) ( ) / ( * ) ( / ) * / ( * ) a Cash-to-cash cycle time in days a Cycle time to place purchase order in hours a Days payable Procure to pay cycle time in days Page 3
4 Staff Productivity Number of purchase order line items processed per "order materials and services" FTE Number of purchase orders processed per "order materials and services" FTE Number of purchase orders processed per procurement process group FTE Number of active suppliers in vendor master file per procurement process group FTE Total purchase value (spend, in thousands of dollars) per procurement process group FTE Supplemental Information Direct materials and services value as a percentage of total value of Indirect materials and services value as a percentage of total value of Percentage of value of purchased material that is received from vendors that participate in vendor-managed inventory programs Percentage of procurement process group staff with formal training in negotiations Percentage of procurement process group staff with over three years of purchasing operations experience Percentage of procurement process group staff with over three years of strategic sourcing/commodity management experience Percentage of total value of direct materials and services purchased outside of country Value of materials and services per $1, / a / a / ( / ( ( /( )) *.001 a ( a / c) * 100 ( b / c) * c b a / ( *.001) Page 4
5 About APQC's Open Standards Benchmarking APQC is the steward of the open standard benchmarking content. Content is developed and reviewed by various subject matter experts. Participation in APQC's Open Standards Benchmarking is complimentary for APQC Enterprise Members. APQC Functional Members can benchmark in their functional membership at no cost. By participating, you will receive a detailed table comparing your responses with those of your peers. In essence, you ll get a row-by-row comparison of your responses versus those of your peers. The data tables will feature your answers as well as indicate the high, median and low performance ranges. Past participants have used open standards benchmarking research reports to set baselines for process improvement projects, to build a business case for new initiatives, to prioritize high-impact opportunities, and even to validate success or return on investment from efforts. For more information, call or visit Page 5
Open Standards Benchmarking Measure List
103616 Total cost to perform the process "design, 103683 Total cost to generate new product/service ideas 103764 Total cost to support product manufacturing or service delivery 103926 Total cost to perform
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