Resource Library

Cost of goods sold as a percentage of revenue

This measure calculates the total annual cost of goods sold (COGS) as a percentage of revenue. COGS represents the cost of purchasing raw materials and manufacturing finished…

Ratio of purchases to revenue

This measure calculates the ratio of annual value of all materials and services purchased to revenue. It is part of a set of Supplemental Information measures that help…

Value of materials and services per $1,000 revenue

This measure calculates the value of materials and series per $1,000 revenue. It is part of a set of Supplemental Information measures that help companies evaluate additional…

Percentage of customer accounts set up for automatic cash application

This measure helps companies calculate the percentage of customer accounts that are set up for automatic cash application, a process in which cash receipts from customers are…

Percentage of sales orders delivered on time

This measure calculates the percentage of all sales orders that were delivered within the agreed-upon time frame. It is part of a set of Process Efficiency measures that help…

Cycle time in hours to place a purchase order

This measure calculates the average cycle time in hours from the receipt of a purchase requisition line item to the time the purchase order is transmitted to the vendor…

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…

Total cost to perform the process "select suppliers and develop/maintain contracts" per $1,000 revenue

This measure calculates total cost per $1,000 revenue for selecting suppliers (typically through a request for information [RFI], request for proposal [RFP], or request for…

Total cost to perform the process "select suppliers and develop/maintain contracts" per $1,000 purchases

This measure calculates total cost per $1,000 purchases for selecting suppliers (typically through a request for information [RFI], request for proposal [RFP], or request for…

Total cost to perform the process group "procure materials and services" per $1 billion revenue

This measure calculates total cost to perform the process group "procure materials and services" per $1 billion revenue. Total cost is the sum of personnel (compensation…

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…

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…

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

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

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…