KPIs to Create Margin Impact

This report shows how select manufacturing companies use Coupa’s #1 AI Total Spend Management platform as a margin multiplier. Discover KPIs and community-powered benchmarks along with best practices that have an exponential impact on growth, productivity, efficiency, resiliency, and sustainability.

Access Exclusive Data and Insights to Free Up Capital for Growth

Structural cost pressures. Tighter financial conditions. Cost volatility. Increasingly complex supplier relationships. Today’s economy is fundamentally different. And in this new era, the ways that most companies are continuing to do business aren’t designed to build capabilities that drive profitable growth. The companies that can’t adapt are the ones that close their doors forever.

To guide business transformation, finance and procurement leaders can look to best-in-class performance in total spend management. How are top performers using AI, data, and advanced technology to create margin impact and make smarter decisions? This report features community-powered benchmarks across 14 KPIs to help leaders answer questions like:

  • To what extent is my business capable of stopping margin erosion?
  • How can I transform our company’s spend management to gain a margin multiplier effect? Where will I need to invest?

What makes Coupa benchmarks unique?

6.3% overall savings

What it means

Traditional spend management approaches typically yield 2% to 3% in savings relative to overall spend. Top performers this year saved far more by applying total spend management best practices.

Why it matters
  • Total spend management is becoming essential for profitable growth, as finance leaders focus on controlling organizational spending in an increasingly complex, uncertain world.
  • A total spend management platform provides finance leaders with crucial visibility into company resource use.
  • Greater visibility into all spending, from COGS to operating expenses, enables leaders to fund growth through disciplined spend control.
How to improve

8.1 business days cycle time for contract management

What it means

The time between requesting a contract and the contract being signed

Why it matters
  • Long contract cycle times delay the business benefits of new agreements, and they create the risk that the business starts working with a new supplier before the contract protections are in force.
  • Teams can respond more quickly to supply issues by accelerating the time to bring new suppliers and awarded bids into contract and purchasing.
  • Faster contract execution removes uncertainty in the supply chain, leading to better planning and quicker business enablement.
How to improve

92.4% invoices processed electronically

What it means

The percentage of invoices processed through any electronic, automated means

Why it matters
  • It improves compliance by using automated controls to match invoices to POs, apply account coding, and route for approval according to Designation of Authority rules.
  • Suppliers gain real-time visibility into approval and payment status, which can reduce time spent on updates.
  • AP can optimize payment timing to either maximize Days Payable Outstanding or capture early-payment discounts.
  • With visibility into invoice data, treasurers and cash managers can plan for
  • upcoming payments and reduce cash shortfalls.
How to improve