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FOR IMMEDIATE RELEASE

Metrics for Sustaining Success

CAPS Research releases the 2007 performance metrics of greatest interest to the Aerospace & Defense Industry

Tempe, AZ, July 5, 2007 – Supply management operations are becoming increasingly important to an organization's success, and supply management leaders are moving closer to executive leadership. Chief Executive Officers are taking greater interest in the supply management sector. One third of the participating organizations in the 2007 Aerospace & Defense Industry CAPS Research benchmarking survey reported the Chief Purchasing/Procurement Officer (CPO) directly reports to the CEO or President. Twenty percent report to another C-level Executive, and the other CPOs' report to an Executive VP or Director of Manufacturing/Operations.

In its eighth report of the industry since 1990, CAPS Research surveyed leading Aerospace & Defense organizations with combined total sales of $72.6 billion and average sales of $4.8 billion.

A few highlights from the latest report include the following:

• On average, supply management employees accounted for 2.8 percent of total organization employees. 26.5 percent of total supply management employees were shared services center employees and 3.5 percent of supply management employees were contract/temporary employees.
• Average annual spend on training per supply management employee (FTE) was $1,706.
• Average managed spend per supply management employee was $6,805,955.
• On average, supply management operating expense per supply management employee was $134,808.
• Internal buys accounted for 20.8 percent of total spend and external buys accounted for 79.1 percent of total spend.
• 7.2 percent of active suppliers accounted for 80 percent of total spend and 0.96 percent of active suppliers accounted for the top twenty percent of total spend.
• 33.3 percent of active suppliers are e-Procurement enabled and 38.8 percent of spend was via e-Procurement.

This report establishes a composite standard or benchmarking comparison of supply management peer performance in the industry. To conduct this and all benchmarking studies, CAPS Research forms an Industry Advisory Committee of industry executives to determine the specific data to be collected. Three criteria are used: usefulness of the resultant benchmark, availability of needed data within the supply management organization, and comparability of data among companies.

Click on the following link to review the report, "CAPS Research Aerospace & Defense Industry 2007 Supply Management Performance Benchmarking": http://www.capsresearch.org/publications/pdfs-protected/Aero2007.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™.

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