This measure calculates percentage of procurement costs allocated to indirect materials and services purchases. Indirect materials and services are procured items and activities not directly used to produce a product. Indirect materials and services can include machine maintenance supplies and machine maintenance services as well as office supplies. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process group "Procure materials and services".
Percentage of procurement costs allocated to indirect materials and services purchases
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.