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
25th | Median | 75th |
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- | - | - |
Compute this Measure
Units for this measure are percent.
(Outsourced cost to perform the process "order materials and services" / Total cost to perform the process "order materials and services") * 100
Key Terms
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.