This measure calculates the percentage of purchase order line items that were transacted via e-procurement enabled catalogue suppliers (i.e. those that use internet or EDI to restock maintenance, repair, and operations (MRO) supplies). A purchase order line item is a unique entry on a purchase order. For example, a purchase order for office furniture that includes two chairs, two desks, and one floor lamp would have three line items. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "procure materials and services" process by minimizing waste and refining resource consumption.
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Percentage of purchase order line items transacted using e-procurement enabled catalogue suppliers
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.