In general, business performance is about beating your objectives, trending in the right direction and doing it better than the competition. But with meaningful benchmark analysis, you can learn from the experience of others and apply that learning to making more informed spend management decisions. For example:
- If you learned that, on average, 30% of spending requests are rejected, and your company is only rejecting 2% of requests, wouldn’t you want to consider implementing stricter spending approval policies, now that you have real data to justify this change?
- What if you learned that, on average, turnaround time from requisition to approval took two hours, while at your company the average is three days? Wouldn’t you consider simplifying the workflow and approval routing process at your company so that employees can get the goods and services they need to do their jobs faster? How much administrative burden and expense would that eliminate?
- What if you learned that most companies have at least three suppliers per commodity category where they take advantage of pre-negotiated discounts and where they conduct all transactions electronically? Wouldn’t you consider leveraging Coupa for streamlined electronic PO and invoice handling via the Supplier Network in order to save on transaction costs?
With Coupa you have access to critical benchmarking data that you cannot get with any other system!
Establishing benchmarks are really only as good as the data that's being collected. That's why Coupa's benchmarking capabilities is only built on real customer transactional data, not subjective surveys, but real information.
Below are a set of benchmarks that are tied to requisition processing. Take a look at your benchmarks in your Coupa service to see where you are doing better than the market, or where you can improve.
Use these tips as a way to improve your procurement processes, and continue to save your company money!
|Benchmark||Ways to Improve|
|Free Form Request|| |
|Req to Approval Cycle Time|| |
Below are a set of benchmarks that are tied to Purchase Orders. Take a look at your benchmarks in your Coupa service to see where you are doing better than the market, or where you can improve.
|Benchmark||Ways to Improve|
|Avg PO Value||Require PO for requests above certain amounts|
|POs Issued|| |
|Active Suppliers|| |
|PO Revisions|| |
|P-card spend|| |
|Orders processed per FTE|| |
|Cost of Processing PO||See above + rationalize PO approval limits|
Below are a set of benchmarks that are tied to Invoices. Take a look at your benchmarks in your Coupa service to see where you are doing better than the market, or where you can improve.
|Benchmarks||Ways to Improve|
|Approved Invoices|| |
|Invoices Hold|| |
|Release Holds||See above|
|Non-matched invoices|| |
|Voids||Encourage suppliers to reference PO number and / or procurement contact on the invoice|
|Invoices Processed per FTE|| |