Procurement Operating Expense as a Percentage of Managed Spend

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KPI Benchmarks : Procurement Operating Expense as a Percentage of Managed Spend

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KPI Details : Procurement Operating Expense as a Percentage of Managed Spend

Procurement Operating Expense as a Percentage of Managed Spend measures the total operating-relating expense incurred by the Procurement Department in relation to the dollar amount the Procurement Department has spent on purchases over the same period of time, as a percentage. A lower than average value for this metric is typically related to a few common factors, including non-compliance to company policies and procedures concerning purchases, 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.

KPI Best Practices : Procurement Operating Expense as a Percentage of Managed Spend

KPI Calculation Instructions Procurement Operating Expense as a Percentage of Managed Spend?

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