Spend Under Management (SUM)

Benchmarking Report

Spend Under Management (SUM)

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Spend Under Management (SUM). 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 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, as a percentage.

Why should Spend Under Management (SUM) be measured?

Spend Under Management (SUM) measures the portion of company expenses that are overseen by the Procurement Department. A low value for this KPI may suggest the company is missing out on cost savings/reduction opportunities, the company has high rates of maverick spending or that the company does not have clearly defined Procurement processes. Low values for SUM will also suggest an increase in the number of errors and the time to process and approve invoices that are not from vendors, which will be costly to the company. SUM can be increased by improving the transparency of the purchasing process, adding more approved vendors to the system or the implementation of employee purchasing card programs.

Download a Sample Spend Under Management (SUM)

Frequently Asked Questions

Q: How do you collect and validate your data?

A: From real-world consulting engagements with Fortune 500 leaders. We’ve spent 25 years conducting original research and anonymizing data from our engagements with top companies around the world. Every single data point we collect is scrutinized by our analysts to conform to established baselines and our rigorous in-house validation process. We won’t serve it up to you unless it meets our tough standards for utility and value.

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A: Enough to produce a useful benchmark. And rest assured that it’s all current, validated, and useful. We only include data that’s been collected in the last five years. And while sample sizes vary by KPI, the average is 25, and the high end can surpass 1,000.

Q: How often do you update your reports?

A: Every year. We’re constantly gathering, scouring, and processing new data. We update our reports based on trends our analysts detect in the data, as well as the demand from our consulting clients and customers like you.

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