Outsourced cost to perform the process "order materials and services" as a percentage of total process cost

This measure calculates the percentage of total cost for the "order materials and services" process—which involves planning, ordering, and executing the physical delivery of materials and services from suppliers to the points of need and use—that comes from outsourced cost. Outsourced cost refers to the total cost of outsourcing a specific process to a third party, except one-time charges for any type of restructuring or reorganization. This measure is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "order materials and services" process.

Benchmark Data

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Measure Category:
Supplemental Information
Measure ID:
105212
Total Sample Size:
1,167 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

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Compute this Measure

Units for this measure are percent.

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(Outsourced cost to perform the process "order materials and services" / Total cost to perform the process "order materials and services") * 100

Key Terms

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Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Measure Scope

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Cross Industry (7.3.1)

  • 4.2.3.1 - Process/Review requisitions (10292)
  • 4.2.3.2 - Approve requisitions (10293)
  • 4.2.3.3 - Solicit/Track vendor 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)