Transaction amount per purchase order

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.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
100385
Total Sample Size:
2,471 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are dollars.

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Average transaction amount per purchase order

Key Terms

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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.

Measure Scope

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Cross Industry (7.4)

  • 4.2.1 - Provide sourcing governance and perform category management (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 supplier 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 supplier performance (10300)
    • 4.2.4.3 - Support inventory and production processes (10301)
    • 4.2.4.4 - Monitor quality of product delivered (10302)