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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:
- Customer satisfaction survey
- No touch transactions
- Purchase order cycle time
- 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:
- Cost savings/avoidance
- Input error rate
- On time delivery
- 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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