Contract Services Management: Measuring Performance & Objectives

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Study Overview
Measuring the performance of contract services organizations can be difficult, yet necessary to ensure maximum production and cost efficiency. Companies in all industries can benefit by learning the structures, processes and performance measures of the top performing organizations in contract services management. This benchmarking presentation compiles metrics to identify performance and operational benchmarks in contract services management. This is a fundamentally cross-industry study, with a large focus on the manufacturing industry. This knowledge exchange provides metrics and practices in the following critical contract services areas:

• Structure, Roles and Responsibilities
• Processes & Expenditure
• Productivity & Performance Measurements

• Close to half the benchmarked companies and 67% of top contract services management organizations house contract administration within their sourcing function. Most companies in the “other” category areas also have sourcing involvement.
• Nearly 40% of benchmarked companies hold manufacturing/operations line management responsible for auditing and measuring contractor safety performance.
• Of the three services, engineering contractors tend to have the most overtime (as much as 30%) and facilities have the least (at most 15%). The maximum level of overtime for maintenance contractors is at 20%.

Industries Profiled:
Consulting; Government; Utilities; Manufacturing; Chemical; Pharmaceutical; Health Care; Medical Device; Retail; Energy; Biotech; Biopharmaceutical; Computer Hardware; Research


Companies Profiled:
Boehringer-Ingelheim; GTECH; Defense Contract Management Agency; Suez Environnement; Dofasco; Dow Chemical; DuPont; Eastman Chemical; Johnson & Johnson; Sears; Terasen Gas; Inc; Toshiba

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