KPI Benchmarks : Managed Spend per Procurement Employee
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Managed Spend per Procurement Employee
Managed Spend per Procurement Employee measures the total dollar amount which the Procurement function has spent on purchases in relation to the number of employees working for the Procurement Department over the same period of time. A relatively low value for this metric is typically related to a few common factors, including an overstaffed Procurement department, general inefficiencies within Procurement Department processes (e.g., miscommunications concerning procurement forecasts, misunderstandings over what products/services are needed, inefficient cost comparison research, etc.) and sub-par procurement employee training and performance.
The total dollar amount the Procurement function has spent on purchases divided by the number of employees working within the Procurement function over the same period of time.
KPI Calculation Instructions Managed Spend per Procurement Employee?
KPI Formula :
Spend Under Management (SUM)
The amount of company spending (direct, indirect and service-related spending) that is managed by the Procurement Department divided by total company-wide spend over the same period of time,...
KPI Type : Quality
Formula : (Dollar Amount of Expenses Managed by Procurement / Total Company-Wide Expense) * 100
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