This measure determines the amount of dollars transacted per purchase order. It helps businesses understand the level of activity in regards to supplier relationships, thus allowing them to ensure sound strategies with suppliers. It 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.
Average transaction amount per purchase order
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.