Category Management: Streamlined Procurement Function

 

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Supplier category management programs involve the strategic development, assessment, and monitoring of procurement and supplier performance in specific supplier categories. Data from APQC's Open Standards Benchmarking in procurement indicates that organizations with category management programs approve more purchase orders electronically. These organizations also need fewer full-time equivalent employees for the procurement cycle as a whole.

Comments (2)

Stephen, Thank you for your

Stephen,

Thank you for your comment. The Number of FTEs for the procurement cycle refers to the number of full-time equivalent employees that support the procurement process group. This only includes the portion of an employee's time that relates to the procurement process, so it is possible that this includes prorated employee time. The data for this measure comes from a range of industries.

Thanks,
Becky

Hi A very interesting report.

Hi
A very interesting report. A couple of questions if I may:

1) regarding the Number of FTEs for the Procurement Cycle per $1 Billion Purchases graph - is this the total size of the Supply Chain teams, or just those involved in day to day procurement (ie excluding managers, administrators, best practice teams, etc)

2) regarding the same graph, were these organizations from a range of industries or were they focused on, for example business-as-usual procurement or project procurement organizations?

With thanks and best wishes
Stephen

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