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

This measure calculates the "other" cost (i.e. other than personnel, equipment, material, systems, outsourced, or overhead costs) per $1,000 revenue to perform the "develop sourcing strategies" process, which involves clarifying purchasing requirements, matching needs to supplier capabilities, analyzing a company's spend profile to identify high-opportunity categories, matching the most effective sourcing strategy by category, seeking opportunities to improve efficiency and value, and collaborating with suppliers to identify sourcing strategies. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "develop sourcing strategies."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
104472
Total Sample Size:
156 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

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Compute this Measure

Units for this measure are dollars.

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Costs other than personnel, systems, overhead, and outsourced to perform the process "develop sourcing strategies" / (Total business entity revenue * 0.001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.3.1)

  • 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)