July 2013 Aerospace& Defense Automotive& Transport Chemical Manufacturing DOE/NNSA Contractors Engineering& Construction Financial Services Industrial Manufacturing Metals & Mining Petroleum Utilities OtherIndustries: Manufacturing Other Industries: Non- Manufacturing Averageof Averages 1 47.92% 66.81% 50.82% 41.43% 56.10% 22.06% 54.14% 62.47% 44.07% 41.91% 53.06% 25.51% 47.19% 2 93.00% 93.08% 77.70% 100.00% 85.47% 63.86% 85.18% 83.61% 81.66% 67.91% 77.99% 82.72% 82.68% 3 3.27% 1.14% 1.41% 1.71% 3.32% 0.31% 1.14% 1.45% 3.59% 2.19% 1.11% 0.44% 1.76% 4 23.83% 26.42% 46.15% 68.98% 11.32% 47.97% 55.97% 51.00% 25.99% 26.38% 48.34% 41.81% 39.51% 45.00% 60.00% 66.67% 0.00% 57.14% 77.78% 42.86% 80.00% 28.57% 38.46% 23.08% 47.23% 30.00% 20.00% 16.67% 60.00% 14.29% 0.00% 14.29% 10.00% 14.29% 30.77% 0.00% 19.12% 6 76.17% 73.58% 53.85% 31.02% 88.68% 37.74% 44.03% 49.00% 74.01% 73.62% 51.66% 58.19% 59.30% 25.00% 0.00% 16.67% 100.00% 0.00% 33.33% 42.86% 50.00% 21.43% 23.08% 15.38% 29.80% 55.00% 80.00% 33.33% 0.00% 28.57% 11.11% 14.29% 30.00% 50.00% 30.77% 23.08% 32.38% 8 2.03% 0.97% 0.45% 2.16% 2.74% 0.28% 1.06% 0.48% 0.80% 0.74% 0.57% 0.45% 1.06% 9 $140,256 $102,977 $144,785 $115,441 $126,842 $113,337 $117,064 $116,047 $152,167 $115,347 $145,037 $136,788 $127,174 10 $7.35 $12.37 $32.52 $5.91 $7.27 $44.00 $21.53 $25.82 $24.79 $25.46 $24.66 $27.23 $21.58 11 $6.63 $10.69 $24.08 $5.91 $4.80 $23.62 $17.00 $20.81 $19.37 $13.75 $18.34 $22.45 $15.62 12 0.75% 0.04% 0.64% 4.34% 0.30% 0.45% 0.37% 0.53% 1.53% 1.25% 1.26% 1.04% 13 $550 $177 $525 $482 $450 $746 $1,028 $450 $772 $600 $1,055 $852 $641 14 3.06% 2.81% 1.29% 2.80% 1.48% 1.94% 3.32% 2.55% 3.28% 2.33% 2.49% 15 3.13% 1.82% 1.76% 0.56% 2.17% 1.89% 16 $467 $115 $117 $63 $175 $913 $381 $145 $373 $305 17 13.38 10.49 2.48 27.46 30.75 1.13 2.90 3.54 1.70 10.43 18 9.63 2.48 12.70 7.79 2.70 4.90 25.24 3.54 2.79 2.85 7.46 19 7.51% 12.35% 4.94% 10.35% 2.65% 7.93% 6.60% 5.50% 3.73% 4.23% 5.81% 4.83% 6.37% 20 28.31% 31.87% 4.61% 16.27% 10.69% 10.20% 16.99% Data Year: 2012 Release Date: July 10, 2013 Total spend as a percent of sale/revenue dollars Percent of total spend managed/controlled by supply management Supply management employees as a percent of company employees Percent of supply management employees that are strategic Percent of companies that reported an increase in supply management strategic employees Percent of companies that reported a decrease in supply management strategic employees C r o s s - I n d u s t r y
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B e n c h m a r k s Cost avoidance savings as a percent of managed spend Average purchase order processing cost Percent of supply management employees that are operational Percent of companies that reported an increase in supply management operational employees Percent of companies that reported a decrease in supply management operational employees Supply management operating expense as a percent of total spend Supply management operating expense per supply management employee Total spend per supply management employee (millions) Average cycle time (in days) from requisition approval to PO placement for direct goods Average cycle time (in days) from requisition approval to PO placement for indirect goods and services Percent of active suppliers that account for 80% of total spend Percent of spend with qualified socioeconomic program suppliers 5 7 Managed spend per supply management employee (millions) Percent of total spend via pCards Annual spend on training per supply management employee Cost reduction savings as a percent of managed spend Copyright 2013 Institute for Supply Management and W. P. Carey School of Business at Arizona State University. All rights reserved Copyright 2011 Institute for Supply Management and W. P. Carey School of Business at Arizona State University. All rights reserved.
May 15, 2012
Cross-Industry Report of Standard Benchmarks Glossary
Active Supplier: A supplier from whom you purchased goods and/or services during the reporting period.
Cost avoidance: The difference between prices for goods and services and the probable increase in prices during the reporting year if actions had not been taken to obtain reduced costs for the same goods and services.
Cost reduction: Realized by reducing the cost of the same goods or services purchased during the reporting period against the price paid in the previous reporting period.
Direct Goods: Raw materials and components that can be identified with individual units of output.
Indirect Goods and Services: Indirect goods and services that are not identified with individual units of output and do not end up in the product or service delivered to the customer.
Managed and/or controlled spend: Purchases carried out following company policies and procedures that meet one of the two following conditions: Purchases made by the supply management department. Purchases made directly by end users following policies, procedures, and commercial framework set up by the supply management department.
Operational employees: Supply management employees that are primarily engaged in day-to-day procurement activities that support an organization's standard procurement processes and procedures.
Organization employees: Total number of all employees in the organization (corporation, company, division, group, or business unit) for which you are reporting.
Training: Learning opportunities that facilitate a persons professional development and career enhancement.
Purchase order: A legally binding document prepared by a purchaser to describe the terms and conditions of a purchase.
Strategic employees: Supply management employees engaged in long-range sourcing and procurement activities that are critical to the organization's ability to meet its core business objectives. Copyright 2011 Institute for Supply Management and W. P. Carey School of Business at Arizona State University. All rights reserved.
Supply Management Operating expense: All of the supply management groups salaries and payroll-related expenses (e.g., FICA, benefits); allocated expenses (e.g., space, facilities, equipment, utilities, telecommunications, information technology, etc.); and unallocated expenses (controllable expenses incurred such as travel, training, materials, and supplies). Do not include costs allocated to the supply management group on some basis for Corporate, Segment, or Business Unit management allocations.