Procurement
Never before have goods, capital, and information flowed so freely across international boundaries.
Many procurement departments have gone as far as they can when it comes to leveraging price savings out of suppliers. Progressive organizations are devising new ways for procurement to become a core competitive weapon and increase shareholder value.
Assess Your Performance Now
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By participating in this assessment, procurement professionals can unearth new opportunities for:
- reducing the cost of materials and services,
- increasing supplier on-time delivery rates, and
- improving incoming materials quality.
By comparing your organization’s performance with that of top-performing peers, you will be able to identify areas that may require attention and resources to keep up with or stay ahead of your competitors.
For example, it costs top procurement organizations $60 to process a single purchase order. This includes the total costs of developing a sourcing strategy, selecting suppliers, developing contracts, and ordering materials and services. Such efficiency is a huge advantage over the typical operation, which reports a median purchase order processing cost of $132.
Other key procurement measures included are:
- average supplier lead time,
- days payable,
- total supplier appraisal costs, and
- total number of procurement employees.
To guide you in your adoption of best practices and implementation of information systems, the report also reviews the following:
- procurement system integration,
- automated procurement processes,
- degree of centralization, and
overall procurement strategy of your peers as well as industry at large.
Why Trust APQC?
Founded in 1977, APQC is a member-based nonprofit organization. APQC serves as a steward for broader open standards benchmarking, providing global, consistent process measurement.
Need Help?
For help getting started, please contact the help desk at +1-713-681-4020, 800-776-9676, or osbc@apqc.org.