Benchmarking of FS Purchasing Costs
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Benchmarking of FS Purchasing Costs
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© The Z/Yen Group of Companies 2008
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Central to the process of improvement is a thorough understanding of an bank's own costs and how these costs compare to its peers. Although there are some available figures for the overall cost of a transaction, there has been no detailed benchmarking across Financial Services (FS) and, as purchasing profiles differ widely, management have found it difficult to compare non-FS services data to their own costs. Z/Yen has a long history of innovative work in the FS sector and, in the last 4 years, has run many annual Competitive Cost Comparison (CCC) benchmarking studies covering "back-office & IT costs" over various products & markets. So far, over 25 major banks have taken part in these studies. Each of these CCC studies follows a similar methodology whereby representatives from each of the participant organisations are brought together in a series of workshops facilitated by Z/Yen to define scope, standard definitions, data collection templates and report outputs. At the end of the workshops a deadline is set for data submission. Following receipt of data, Z/Yen perform a full validity check before reporting. Z/Yen now propose to initiate a new CCC study into the purchasing & accounts payable area. The format of this study will follow that of the "back-office" studies, i.e., to capture cost, headcount & transaction volume data on:
To ensure confidentiality, each participant is given a unique code name under which all its data is indexed. Z/Yen, as the independent third party, acts as the repository for the data, collects information from each participant, collates the data into a set of benchmarks and then presents results to each organisation. |
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