CAPS Research

Cross-Industry Report of Standard Benchmarks

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

C
o
m
p
a
r
i
s
o
n

o
f

S
t
a
n
d
a
r
d

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.