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)

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