Resource Library

Turnover rate for manufacturing personnel

This measure determines the annualized rate of manufacturing employee departures as a percentage of total production workforce. A high turnover rate often indicates that…

Return on assets

This measure calculates the return on assets as a percentage by dividing total net income by total assets in the same period. It is part of a set of Process Efficiency…

Raw material inventory turns

This measure calculates raw material inventory turns by dividing cost of goods sold (COGS) for the year by the average value of month-end raw material inventory for the most…

Number of FTEs that perform the process "order materials and services" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) per $1 billion revenue who perform the "order materials and services" process, which involves…

Percentage of procurement process group staff with formal training in negotiations

This measure calculates the percentage of procurement process group staff that has been properly trained in negotiations. The procurement process consists of the business…

Percentage of procurement process group staff with over three years of purchasing operations experience

This measure calculates the percentage of procurement process group staff that has over three years of purchasing operations experience. The procurement process consists of…

Percentage of procurement process group staff with over three years of strategic sourcing/commodity management experience

This measure calculates the percentage of procurement process group staff that has over three years of strategic sourcing/commodity management experience. The procurement…

Personnel cost to perform the process "order materials and services" per $1,000 revenue

This measure calculates personnel cost per $1,000 revenue for planning, ordering, and executing the physical delivery of materials and services from suppliers to the points…

Average procure-to-pay cycle time in days

This measure calculates the number of days required to pay suppliers from the time a purchase order is placed until the time payment is complete. It is part of a set of Cycle…

Raw material inventory days of supply

This measure determines raw material inventory days of supply, which is calculated as the value of raw materials inventory divided by the "value of transfers divided by 365…

Total cost to perform the process "manage suppliers" per $1,000 revenue

This measure calculates the total cost per $1,000 revenue to develop and manage programs and policies for interacting with suppliers, and measure/improve their performance…

Total cost to perform the process "develop sourcing strategies" per $1,000 revenue

This measure calculates the total cost per $1,000 revenue to perform the "develop sourcing strategies" process, which involves clarifying purchasing requirements, matching…

Total cost to perform the process "order materials and services" per $1,000 revenue

This measure calculates the total cost per $1,000 revenue for planning, ordering, and executing the physical delivery of materials and services from suppliers to the points…

Sales order accurate documentation rate

This measure calculates the number of annual sales orders delivered with accurate documentation divided by the total number of annual sales orders. Accurate documentation…

First contact resolution rate for inquiries on existing orders and service-after-sales requests

A first contact resolution rate measures the percentage of questions/concerns resolved in a customer's first attempt without a need for further assistance needed. This…