Procurement Operating Expense as a Percentage of Managed Spend

Benchmarking Report

Procurement Operating Expense as a Percentage of Managed Spend

This PDF report includes benchmarking data (in a visual, chart-based format), a comprehensive KPI definition, characteristics of high performers and technical details on measuring Procurement Operating Expense as a Percentage of Managed Spend. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.


What is Procurement Operating Expense as a Percentage of Managed Spend?

The total operating-related expense (employee salaries and benefits, occupancy costs, etc.) incurred by the Procurement Department divided by the dollar amount the Procurement Department has spent on purchases over the same period of time, as a percentage.

Why should Procurement Operating Expense as a Percentage of Managed Spend be measured?

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.


Download a Sample Procurement Operating Expense as a Percentage of Managed Spend

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