Total cost to perform the process "provide sourcing governance and perform category management" for direct materials and services per $1,000 revenue

This measure calculates, for direct materials and services, the total cost per $1,000 revenue to perform the "provide sourcing governance and perform category management" process, which involves clarifying purchasing requirements, matching needs to supplier capabilities, analyzing a company's spend profile to identify high-opportunity categories, matching the most effective sourcing strategy by category, seeking opportunities to improve efficiency and value, and collaborating with suppliers to identify sourcing strategies. Direct materials and services are procured items and activities used to directly produce a product. Direct materials and services include raw materials and any additional services necessary to convert raw materials to finished goods. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "provide sourcing governance and perform category management".