ABOUT APQC's OPEN STANDARDS BENCHMARKING MEASURE LIST
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1 ABOUT APQC's OPEN STANDARDS BENCHMARKING MEASURE LIST The APQC Open Standards Benchmarking measure list concisely lists all of the measures currently available for a specific survey. These measures are organized by research area (A), the survey name (B), and finally by category of measure (C). The list identifies each measure's "metric group ID" number (D), the measure name (E), the formula in english as APQC computes it(f), the formula in question numbers specific to this survey (G), and whether or not the measure is a key performance indicator for its associated process (H). For more information about APQC's Open Standards Benchmarking, please contact us directly on or visit the APQC Open Standards Benchmarking website on Page 1
2 ID # NAME FORMULA KPI SUPPLY CHAIN MANAGEMENT (SCM) Cost of goods sold per product (SKU) Cost of goods sold (COGS) / Number of products (SKUs) supported/managed / Inventory carrying cost as a percentage of inventory value Inventory carrying cost as a percentage of average inventory value Personnel cost to perform the process group "plan for and align supply chain resources" per $1,000 revenue allocated to internal cost * Percentage of internal cost of the process group "plan for and align supply chain resources" allocated to personnel cost * ) / (Total business entity revenue *.001) ( * a * a * a * ) / ( *.001) Supply chain management costs per $1,000 revenue Supply chain management cost / (Total business entity revenue *.001) Total cost to perform the process group "Deliver service to customer" per $1 billion revenue Total cost to perform the process group "deliver service to customer" per $1,000 revenue Total cost to perform the process group "manage logistics and warehousing" per $1 billion revenue / ( *.001) process group "deliver service to customer" *.01) / (Total business entity revenue * ( * d *.01) / ( * process group "deliver service to customer" *.01) / (Total business entity revenue *.001) ( * d *.01) / ( *.001) process group "manage logistics and warehousing" *.01) / (Total business entity revenue * ( * e *.01) / ( * Page 2
3 Total cost to perform the process group "manage logistics and warehousing" per $1,000 revenue Total cost to perform the process group "plan for and align supply chain resources" per $1 billion revenue Total cost to perform the process group "plan for and align supply chain resources" per $1,000 revenue Total cost to perform the process group "procure materials and services" per $1 billion revenue Total cost to perform the process group "procure materials and services" per $1,000 revenue Total cost to perform the process group "produce/manufacture/deliver product" per $1 billion revenue process group "manage logistics and warehousing" *.01) / (Total business entity revenue *.001) ( * e *.01) / ( *.001) resources" *.01) / (Total business entity revenue * ( * a *.01) / ( * resources" *.01) / (Total business entity revenue *.001) ( * a *.01) / ( *.001) process group "procure materials and services" *.01) / (Total business entity revenue * ( * b *.01) / ( * process group "procure materials and services" *.01) / (Total business entity revenue *.001) ( * b *.01) / ( *.001) process group "produce/manufacture/deliver product" *.01) / (Total business entity revenue * ( * c *.01) / ( * Page 3
4 Total cost to perform the process group "produce/manufacture/deliver product" per $1,000 revenue Total cost to perform the procurement process group as a percentage of revenue Total cost to perform the supply chain function "deliver products and services" per $1,000 revenue process group "produce/manufacture/deliver product" *.01) / (Total business entity revenue *.001) ( * c *.01) / ( *.001) ( process group "procure materials and services" *.01) / (Total business entity revenue )) * 100 (( * b *.01) / ( )) * 100 Total cost to perform the supply chain function / (Total business entity revenue *.001) / ( *.001) Total transportation cost per $1,000 revenue Transportation cost / (Total business entity revenue *.001) / ( *.001) Cost of goods sold as a percentage of revenue (Cost of goods sold (COGS) / Total business entity revenue) * Outsourced cost to perform the process group "Plan for and align supply chain resources" per $1,000 revenue ( / ) * 100 allocated to external cost *.0001) / (Total business entity revenue *.001) ( * a * b *.0001) / ( *.001) Page 4
5 Overhead and other costs to perform the process group "Plan for and align supply chain resources" per $100,000 revenue Percentage of the total cost of the supply chain function allocated to the process group "Deliver service to customer" Percentage of the total cost of the supply chain function allocated to the process group "Manage logistics and warehousing" Percentage of the total cost of the supply chain function allocated to the process group "Plan for and align supply chain resources" Percentage of the total cost of the supply chain function allocated to the process group "Procure materials and services" Percentage of the total cost of the supply chain function allocated to the process group "Produce/Manufacture/Deliver product" Percentage of the total cost of the supply chain function allocated to transportation allocated to internal cost * Percentage of internal cost of the process group "plan for and align supply chain resources" allocated to overhead/other costs * ) / (Total business entity revenue *.00001) ( * a * a * c * ) / ( *.00001) process group "deliver service to customer" d process group "manage logistics and warehousing" e resources" a process group "procure materials and services" b process group "produce/manufacture/deliver product" c (Transportation cost / Total cost to perform the supply chain function) * 100 ( / ) * 100 Page 5
6 Personnel cost to perform the process group "Plan for and align supply chain resources" per process group FTE allocated to internal cost * Percentage of internal cost of the process group "plan for and align supply chain resources" allocated to personnel cost * ) / Number of FTEs who perform the process ( * a * a * a * ) / Supply chain management cost per sales order Supply chain management cost / Number of sales orders placed Systems cost to perform the process group "plan for and align supply chain resources" per $100,000 revenue Total cost to perform the process group "manage logistics and warehousing" per sales order placed Total cost to perform the process group "Plan for and align supply chain resources" per process group FTE Total cost to perform the supply chain function "deliver products and services" per $1 billion revenue / allocated to internal cost * Percentage of internal cost of the process group "plan for and align supply chain resources" allocated to systems cost * ) / (Total business entity revenue *.00001) ( * a * a * b * ) / ( *.00001) process group "manage logistics and warehousing" *.01) / Number of sales orders placed ( * e *.01) / resources" *.01) / Number of FTEs who perform the resources" ( * a *.01) / Total cost to perform the supply chain function / (Total business entity revenue * / ( * Page 6
7 Total cost to perform the supply chain function per sales order Total cost to perform the supply chain function / Number of sales orders placed CYCLE TIME (4 MEASURES) / Cash-to-cash cycle time in days Cash-to-cash cycle time in days Customer order cycle time in days Cycle time in days from a customer's placing a primary product/service order to the product/service's delivery Days sales outstanding Days sales outstanding in accounts receivable Days payable Days payable outstanding PROCESS EFFICIENCY (18 MEASURES) Customer retention rate for all customers over the past three reporting periods Customer retention rate over the past three years Finished goods inventory turns Finished goods inventory turn rate Percentage of customers claiming to be satisfied Percentage of customers claiming to be satisfied Perfect order performance Perfect order performance Warranty costs (repair and replacement) as a percentage of sales Warranty costs as a percentage of sales Average monthly national forecast error measured by the mean absolute percentage error (MAPE) Average monthly product family forecast error (mean absolute percentage error, MAPE) Average monthly national forecast error measured by the mean absolute percentage error (MAPE) Average monthly product family logistics forecast error Page 7
8 PROCESS EFFICIENCY (18 MEASURES) Average monthly shipping location forecast error measured by the mean absolute percentage error (MAPE) Expedited costs as a percentage of total cost of the logistics process group "manage logistics and warehousing" Average monthly shipping location forecast error measured by the mean absolute percentage error (MAPE) Percentage of total logistics costs that are expedited Forecast accuracy as a percentage of units shipped Forecast accuracy as a percentage of units shipped Forecast accuracy as a percentage of value shipped Forecast accuracy as a percentage of value shipped Forecast accuracy one planning period prior to production run Forecast accuracy one planning period prior to production run Percentage of sales orders received through new (such as digital/electronic) channels Percentage of sales orders received through non-digital channels (such as face-to-face, phone calls, fax, post) Percentage of sales orders received through new (such as digital/electric) channels Percentage of sales orders received through traditional channels Raw material inventory turns Raw material inventory turn rate Return on fixed assets Return on fixed assets Total inventory turns Total inventory turns rate Value of sales order line items not fulfilled due to production capacity or stockouts as a percentage of revenue STAFF PRODUCTIVITY (2 MEASURES) Number of FTEs that perform the process group "plan for and align supply chain resources" per $1 billion revenue Value of sales order line items not fulfilled due to production capacity or stockouts as a percentage of revenue Number of FTEs who perform the process group "plan for and align supply chain resources" / (Total business entity revenue * / ( * Page 8
9 STAFF PRODUCTIVITY (2 MEASURES) Number of products (SKUs) per FTE that performs the process group "plan for and align supply chain resources" Number of products (SKUs) supported/managed / Number of FTEs who perform the process group "plan for and align supply chain resources" SUPPLEMENTAL INFORMATION (4 MEASURES) Percentage of supply chain workforce which has completed Six Sigma training Percentage of supply chain workforce which has received professional supply chain certification / Supply chain workforce that has completed Six Sigma Percentage of your supply chain worforce received professional supply chain certification Return on working capital Return on working capital Touchless order performance Business entity's touchless order performance 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 9
Open Standards Benchmarking Measure List
Cost Effectiveness Page 1 100784 Inventory carrying cost as a percentage of average inventory value 103506 Total cost to perform the logistics process logistics" per $1,000 103509 Total cost to perform
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