Resource Library

Percentage of sales orders delivered on time

This measure calculates the percentage of all sales orders that were delivered within the agreed-upon time frame. It is part of a set of Process Efficiency measures that help…

Value of materials and services per $1,000 revenue

This measure calculates the value of materials and series per $1,000 revenue. It is part of a set of Supplemental Information measures that help companies evaluate additional…

Ratio of purchases to revenue

This measure calculates the ratio of annual value of all materials and services purchased to revenue. It is part of a set of Supplemental Information measures that help…

Cycle time in hours to place a purchase order

This measure calculates the average cycle time in hours from the receipt of a purchase requisition line item to the time the purchase order is transmitted to the vendor…

Average cost per sales order for orders received through new channels

This measure calculates the average cost of sales orders received through new channels (digital/electronic), which include internet, EDI, and mobile platforms. It is part of…

Average cost per sales order for orders received through traditional channels

This measure calculates the average cost of sales orders received through traditional channels, which include face-to-face, phone calls, postal mail, and facsimiles. It is…

Cash-to-cash cycle time in days

This measure projects the amount of days it takes for an investment made to flow back into a company after it has been spent for raw materials. For services, this represents…

Cost of goods sold as a percentage of revenue

This measure calculates the total annual cost of goods sold (COGS) as a percentage of revenue. COGS represents the cost of purchasing raw materials and manufacturing finished…

Cycle time in hours from the time a sales order is received until the time manufacturing/logistics is notified

This measure calculates the number of hours elapsed between receipt of a sales order and notification of manufacturing/logistics. It is part of a set of Cycle Time measures…

Customer order cycle time in days

This measure calculates the average cycle time in days (including weekends) between order placement by the customer and order delivery to the customer for primary products…

Finished goods inventory days of supply

This measure calculates total finished goods inventory days of supply by dividing "finished goods inventory" by the "value of transfers divided by 365 days." The value of…

Finished goods inventory turns

This measure calculates finished goods inventory turns by dividing cost of goods sold (COGS) for the year by the average value of month-end finished goods inventory for the…

Inventory value per $1,000 total revenue

This measure calculates the value of inventory/stock expressed in currency per $1,000 total revenue. It is part of a set of Process Efficiency measures that help companies…

Number of FTEs that perform the process "manage sales orders" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) tending to the entire process "manage sales orders" per $1 billion revenue. The "manage sales…

Number of FTEs that perform the process "order materials and services" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) per $1 billion revenue who perform the "order materials and services" process, which involves…