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   A Global Research Center for Strategic Supply Management

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FOR IMMEDIATE RELEASE

Measuring Organizational Effectiveness

Supply Management Shared Services Centers

(TEMPE, Arizona) October 6, 2009 — The operational impact of employing a Supply Management Shared Services Center (SMSSC) may result in achieving a desired level of effectiveness at the lowest operational costs through consolidation. The CAPS Research report, "Measuring the Organizational Effectiveness of Supply Management Shared Services Centers", is the fourth benchmarking-focused report regarding Shared Services Centers, and provides a cross-industry view of standardized processes, organizational structure, and SMSSC quality metrics.

Functional activities included in the SMSSC report range from accounting to travel. It's interesting to note the increase from the previous report in the percent of organizations indicating the following functional activities are included in the SMSSC: accounts payable, IT systems, material & supplier data management, purchasing policy compliance, risk management, strategic planning, and travel.

There are twelve SMSSC performance measures in this report that were rated on a scale of 1 (not important), to 7 (very important). Customer service and total cost savings were listed as most important, and sourcing, budget planning and execution, increased from the previous report.

Participants were asked to list the top three cycle time metrics used to measure SMSSC efficiency. Some of the most frequently listed include:

  1. Customer satisfaction survey
  2. No touch transactions
  3. Purchase order cycle time
  4. Total savings

Participants were also asked to list the top three quality metrics used to measure SMSSC efficiency. A few of the most mentioned include:

  1. Cost savings/avoidance
  2. Input error rate
  3. On time delivery
  4. Purchase order accuracy

Click on the following link to access the benchmarking report, "Measuring the Organizational Effectiveness of Supply Management Shared Services Centers": http://www.capsresearch.org/publications/pdfs-protected/SharedServices2009Metric.pdf.

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CAPS Research is a nonprofit research organization founded in 1986 to provide leading research to our strategic-minded corporate sponsors and to the public. Our mission is to work in partnership with a global network of executives and academics for the discovery and dissemination of strategic supply management knowledge and best practices. CAPS Research is jointly sponsored by the W. P. Carey School of Business at Arizona State University, and the Institute for Supply Management™ and Global 1000/Fortune 500-size organizations.

Media Contact:
Clare Donnalley
Marketing Manager
CAPS Research
Voice: 800/888-6276 extension 3007
cdonnalley@capsresearch.org

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