Number of FTEs that perform the process group "procure materials and services" for direct materials and services per $1 billion revenue

This measure calculates, for direct materials and services, the total number of full-time equivalent employees (FTEs) per $1 billion revenue that perform the process group "procure materials and services," which involves business activities like procurement planning, purchasing, sourcing, and inventory management. Further functions include sourcing strategies, selecting suppliers and developing contracts, ordering materials and services, and appraising and developing suppliers. Direct materials and services are procured items and activities used to directly produce a product. Direct materials and services include raw materials and any additional services necessary to convert raw materials to finished goods. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "procure materials and services" process by minimizing waste and refining resource consumption.

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Measure Category:
Process Efficiency
Measure ID:
110599
Total Sample Size:
285 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are FTEs.

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Number of FTEs who perform the process group "procure materials and services" associated with direct materials/services / (Total business entity revenue * .000000001)

Key Terms

There are no key terms associated with this measure.
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Measure Scope

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Cross Industry (7.4)

  • 4.2.1 - Provide sourcing governance and perform category management (10277)
    • 4.2.1.1 - Develop procurement plan (10281)
    • 4.2.1.2 - Clarify purchasing requirements (10282)
    • 4.2.1.3 - Establish materials management contingency plans (10283)
    • 4.2.1.4 - Match needs to supply capabilities (10284)
    • 4.2.1.5 - Analyze organization’s spend profile (10285)
    • 4.2.1.6 - Seek opportunities to improve efficiency and value (10286)
    • 4.2.1.7 - Collaborate with suppliers to identify sourcing opportunities (10287)
  • 4.2.2 - Select suppliers and develop/maintain contracts (10278)
    • 4.2.2.1 - Select suppliers (10288)
    • 4.2.2.2 - Certify and validate suppliers (10289)
    • 4.2.2.3 - Negotiate and establish contracts (10290)
    • 4.2.2.4 - Manage contracts (10291)
  • 4.2.3 - Order materials and services (10279)
    • 4.2.3.1 - Process/Review requisitions (10292)
    • 4.2.3.2 - Approve requisitions (10293)
    • 4.2.3.3 - Solicit supplier quotes (10294)
    • 4.2.3.4 - Create/Distribute purchase orders (10295)
    • 4.2.3.5 - Expedite orders and satisfy inquiries (10296)
    • 4.2.3.6 - Reconcile purchase orders (10297)
    • 4.2.3.7 - Research/Resolve order exceptions (10298)
  • 4.2.4 - Manage suppliers (10280)
    • 4.2.4.1 - Monitor/Manage supplier information (10299)
    • 4.2.4.2 - Prepare/Analyze procurement and supplier performance (10300)
    • 4.2.4.3 - Support inventory and production processes (10301)
    • 4.2.4.4 - Monitor quality of product delivered (10302)