Percentage of procurement costs allocated to direct materials and services purchases

This measure calculates percentage of procurement costs allocated to direct materials and services purchases. Direct materials and services are procured items and activities used in the production process and are directly traceable to the product. Direct materials and services include raw materials and any additional services or costs necessary to convert raw materials to finished goods. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process group "Procure materials and services".

Benchmark Data

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Measure Category:
Supplemental Information
Measure ID:
106483
Total Sample Size:
2,106 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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Percentage of procurement costs allocated to direct materials and services purchases

Key Terms

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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)

  • 4.2.1 - Develop sourcing strategies (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/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)
  • 4.2.4 - Manage suppliers (10280)
    • 4.2.4.1 - Monitor/Manage supplier information (10299)
    • 4.2.4.2 - Prepare/Analyze procurement and vendor performance (10300)
    • 4.2.4.3 - Support inventory and production processes (10301)
    • 4.2.4.4 - Monitor quality of product delivered (10302)