Benchmarking the Total Cost of Procurement

Historically, many organizations viewed procurement simply as a spend center. Today, leading organizations view sourcing and procurement as a strategic opportunity for process improvement, cost savings, and increased customer satisfaction. Improving the efficiency and effectiveness of the procurement process group can lead to lower costs and better supplier relationships.

This article showcases APQC's perspective on metric data from the Open Standards Benchmarking®  in Procurement database related to total cost to perform the process group "procure materials and services" per $1,000 in revenue.